MARKET DEVELOPMENT
VEGOILS-Palm Gives up Gains, Ends Down After Crude Drops to 5-yr Low
VEGOILS-Palm Gives up Gains, Ends Down After Crude Drops to 5-yr Low
(Recasts, updates prices, adds fresh quote)
* Palm touches near two-wk high before dropping to 2,170 rgt
* Oil drops to 5-yr low on oversupply forecasts
* Malaysia Nov palm output seen down 5.8 pct - growers estimates
09/12/2014 (Reuters) - Malaysian palm oil futures ended lower on Monday after crude markets dived to five-year lows, forcing the tropical oil to give up earlier gains which had stemmed from the ringgit plunging to its weakest since Sept. 2009.
Palm touched a near two-week high in early trade after the Malaysian currency slid to a five-year low on worries that lower crude prices would hurt the country's fiscal deficit.
But further losses in crude later overwhelmed palm, the world's most traded vegetable oil.
"In the morning, prices ran up on the back of the weak ringgit, and in intraday trade there was some profit-taking," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Towards the close, prices were down after crude oil dropped, and soybean oil fell more than 20 points."
The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed 0.1 percent down at 2,171 ringgit ($621) per tonne on Monday, at the lower end of the day's trading range of 2,170-2,204 ringgit.
Total traded volume stood at 33,853 lots of 25 tonnes, just below the usual 35,000 lots.
Brent crude oil fell almost $2 a barrel on Monday to new five-year lows on predictions that oversupply would keep building until next year after OPEC decided not to cut output.
Cheaper crude dents palm's demand as a biofuel feedstock. But losses in palm oil futures will likely be capped by the weak ringgit.
Lingam Supramaniam, director at Malaysian-based commodities firm Pelindung Bestari, said any selling will likely find support at 2,159-2,164 ringgit levels, but a break above 2,200 ringgit could drive benchmark prices to 2,213-2,217 ringgit.
The Malaysian Palm Oil Association, a group of growers, estimates that November crude palm oil production fell 5.8 percent from a month ago to around 1.78 million tonnes.
The expected fall in output is slightly more than a Reuters poll of industry players and planters that pegged output to drop 4.9 percent to 1.8 million tonnes. The poll also sees Malaysian end-stocks at a 21-month high of 2.29 million tonnes.
Official data for Malaysia's November inventories, production and exports will be released by the Malaysian Palm Oil Board on Wednesday.
In competing vegetable oil markets, the U.S. soyoil contract for January shed 0.7 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
Palm, soy and crude oil prices at 1026 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2148 +13.00 2148 2150 300
MY PALM OIL JAN5 2171 +1.00 2170 2202 2769
MY PALM OIL FEB5 2171 -1.00 2170 2204 19857
CHINA PALM OLEIN MAY5 5038 +10.00 5034 5066 892934
CHINA SOYOIL MAY5 5746 +60.00 5726 5780 443096
CBOT SOY OIL JAN5 31.85 +1.20 31.83 32.19 7672
INDIA PALM OIL DEC4 429.20 +1.20 428.00 432.90 748
INDIA SOYOIL DEC4 580.65 +7.90 572.80 580.70 12960
NYMEX CRUDE JAN5 64.71 -1.13 64.59 65.55 27083
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 = 3.494 Malaysian ringgit)
($1 = 6.1727 Chinese yuan)
($1 = 61.90 Indian rupee)
* Palm touches near two-wk high before dropping to 2,170 rgt
* Oil drops to 5-yr low on oversupply forecasts
* Malaysia Nov palm output seen down 5.8 pct - growers estimates
09/12/2014 (Reuters) - Malaysian palm oil futures ended lower on Monday after crude markets dived to five-year lows, forcing the tropical oil to give up earlier gains which had stemmed from the ringgit plunging to its weakest since Sept. 2009.
Palm touched a near two-week high in early trade after the Malaysian currency slid to a five-year low on worries that lower crude prices would hurt the country's fiscal deficit.
But further losses in crude later overwhelmed palm, the world's most traded vegetable oil.
"In the morning, prices ran up on the back of the weak ringgit, and in intraday trade there was some profit-taking," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Towards the close, prices were down after crude oil dropped, and soybean oil fell more than 20 points."
The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed 0.1 percent down at 2,171 ringgit ($621) per tonne on Monday, at the lower end of the day's trading range of 2,170-2,204 ringgit.
Total traded volume stood at 33,853 lots of 25 tonnes, just below the usual 35,000 lots.
Brent crude oil fell almost $2 a barrel on Monday to new five-year lows on predictions that oversupply would keep building until next year after OPEC decided not to cut output.
Cheaper crude dents palm's demand as a biofuel feedstock. But losses in palm oil futures will likely be capped by the weak ringgit.
Lingam Supramaniam, director at Malaysian-based commodities firm Pelindung Bestari, said any selling will likely find support at 2,159-2,164 ringgit levels, but a break above 2,200 ringgit could drive benchmark prices to 2,213-2,217 ringgit.
The Malaysian Palm Oil Association, a group of growers, estimates that November crude palm oil production fell 5.8 percent from a month ago to around 1.78 million tonnes.
The expected fall in output is slightly more than a Reuters poll of industry players and planters that pegged output to drop 4.9 percent to 1.8 million tonnes. The poll also sees Malaysian end-stocks at a 21-month high of 2.29 million tonnes.
Official data for Malaysia's November inventories, production and exports will be released by the Malaysian Palm Oil Board on Wednesday.
In competing vegetable oil markets, the U.S. soyoil contract for January shed 0.7 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
Palm, soy and crude oil prices at 1026 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2148 +13.00 2148 2150 300
MY PALM OIL JAN5 2171 +1.00 2170 2202 2769
MY PALM OIL FEB5 2171 -1.00 2170 2204 19857
CHINA PALM OLEIN MAY5 5038 +10.00 5034 5066 892934
CHINA SOYOIL MAY5 5746 +60.00 5726 5780 443096
CBOT SOY OIL JAN5 31.85 +1.20 31.83 32.19 7672
INDIA PALM OIL DEC4 429.20 +1.20 428.00 432.90 748
INDIA SOYOIL DEC4 580.65 +7.90 572.80 580.70 12960
NYMEX CRUDE JAN5 64.71 -1.13 64.59 65.55 27083
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 = 3.494 Malaysian ringgit)
($1 = 6.1727 Chinese yuan)
($1 = 61.90 Indian rupee)