MARKET DEVELOPMENT
VEGOILS-Palm Snaps Two-day Decline as Traders Bet on Coming Week
VEGOILS-Palm Snaps Two-day Decline as Traders Bet on Coming Week
* Prices down 1.8 percent this week
* Palm expected to test resistance at 2,150 ringgit - technicals
* Some traders waiting for clear signals (Updates prices)
18/10/2014 (Reuters) - Malaysian palm oil rose on Friday, as traders snapped up deals after a two-day selloff and bet on improving fundamentals over the weekend, but gains were limited as some investors waited for clearer direction.
By Friday's close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange was up 1.09 percent at 2,142 ringgit ($654.25) per tonne and was down 1.8 percent on the week.
"The market is holding quite well. Yesterday, palm really dropped so today it retraced back a bit but still continued in a tight range," said a trader with a foreign commodities brokerage in Kuala Lumpur. The contract traded in a range of 2,128 ringgit to 2,145 ringgit.
Malaysian palm oil futures fell to their lowest in more than three weeks on Thursday, dragged by sliding crude prices and worries that bigger supplies of rival edible oils would snatch food and fuel demand away from palm.
Total traded volume on Friday stood at 39,881 lots of 25 tonnes, above the daily traded average of 35,000 lots.
Relatively light trading volume in the morning session showed that traders were waiting for a signal on price, the trader said. "They are waiting for any new development in the market to change direction."
A second trader at a foreign commodities brokerage in Kuala Lumpur said traders were also betting on improvements to fundamentals over the weekend.
Technicals showed palm is expected to test resistance at the 2,150 ringgit per tonne level, a break above which will lead to a further gain to 2,178 ringgit, said Reuters market analyst Wang Tao.
In other markets, Brent crude rose more than a dollar to above $87 a barrel on Friday, bouncing from near four-year lows as investors bought back into a market they said was oversold in the short term.
In other competing vegetable oil markets, the U.S. soyoil contract for December edged down 0.25 percent in early Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange fell 1.12 percent.
Palm, soy and crude oil prices at 1056 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV4 2165 +30.00 2148 2167 426 MY PALM OIL DEC4 2142 +26.00 2132 2151 6085 MY PALM OIL JAN5 2139 +23.00 2128 2148 21561 CHINA PALM OLEIN JAN5 5190 -18.00 5158 5236 999212 CHINA SOYOIL JAN5 5802 -66.00 5786 5882 512108 CBOT SOY OIL DEC4 32.28 -0.70 32.10 32.55 9640 INDIA PALM OIL OCT4 444.60 -0.70 442.40 445.30 329 INDIA SOYOIL OCT4 591.60 +1.05 589.50 591.80 1640 NYMEX CRUDE NOV4 84.09 +1.39 82.53 84.45 28599 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil and RBD palm olein in Chinese yuan per tonne India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel (1 US dollar = 61.5900 Indian rupee) (1 US dollar = 6.1240 Chinese yuan) (1 US dollar = 3.2740 Malaysian ringgit)
* Palm expected to test resistance at 2,150 ringgit - technicals
* Some traders waiting for clear signals (Updates prices)
18/10/2014 (Reuters) - Malaysian palm oil rose on Friday, as traders snapped up deals after a two-day selloff and bet on improving fundamentals over the weekend, but gains were limited as some investors waited for clearer direction.
By Friday's close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange was up 1.09 percent at 2,142 ringgit ($654.25) per tonne and was down 1.8 percent on the week.
"The market is holding quite well. Yesterday, palm really dropped so today it retraced back a bit but still continued in a tight range," said a trader with a foreign commodities brokerage in Kuala Lumpur. The contract traded in a range of 2,128 ringgit to 2,145 ringgit.
Malaysian palm oil futures fell to their lowest in more than three weeks on Thursday, dragged by sliding crude prices and worries that bigger supplies of rival edible oils would snatch food and fuel demand away from palm.
Total traded volume on Friday stood at 39,881 lots of 25 tonnes, above the daily traded average of 35,000 lots.
Relatively light trading volume in the morning session showed that traders were waiting for a signal on price, the trader said. "They are waiting for any new development in the market to change direction."
A second trader at a foreign commodities brokerage in Kuala Lumpur said traders were also betting on improvements to fundamentals over the weekend.
Technicals showed palm is expected to test resistance at the 2,150 ringgit per tonne level, a break above which will lead to a further gain to 2,178 ringgit, said Reuters market analyst Wang Tao.
In other markets, Brent crude rose more than a dollar to above $87 a barrel on Friday, bouncing from near four-year lows as investors bought back into a market they said was oversold in the short term.
In other competing vegetable oil markets, the U.S. soyoil contract for December edged down 0.25 percent in early Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange fell 1.12 percent.
Palm, soy and crude oil prices at 1056 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV4 2165 +30.00 2148 2167 426 MY PALM OIL DEC4 2142 +26.00 2132 2151 6085 MY PALM OIL JAN5 2139 +23.00 2128 2148 21561 CHINA PALM OLEIN JAN5 5190 -18.00 5158 5236 999212 CHINA SOYOIL JAN5 5802 -66.00 5786 5882 512108 CBOT SOY OIL DEC4 32.28 -0.70 32.10 32.55 9640 INDIA PALM OIL OCT4 444.60 -0.70 442.40 445.30 329 INDIA SOYOIL OCT4 591.60 +1.05 589.50 591.80 1640 NYMEX CRUDE NOV4 84.09 +1.39 82.53 84.45 28599 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil and RBD palm olein in Chinese yuan per tonne India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel (1 US dollar = 61.5900 Indian rupee) (1 US dollar = 6.1240 Chinese yuan) (1 US dollar = 3.2740 Malaysian ringgit)