MARKET DEVELOPMENT
VEGOILS-Palm Oil Registers Weekly Drop Despite Support From Indonesia Biodiesel
VEGOILS-Palm Oil Registers Weekly Drop Despite Support From Indonesia Biodiesel
(Recasts, adds quote)
* Prices down 1.8 pct over the week
* Indonesia to increase bio content for diesel to 15 pct
* Palm oil to test support at 2,218 ringgit -technicals
16/03/2015 (Reuters) - Malaysian palm oil futures ended higher on Friday on prospects that top producer Indonesia will blend more palm into biodiesel this year, though concerns over dwindling demand still dragged the contract to its biggest weekly drop in a month.
Indonesia's chief economic minister said on Friday that it will increase the minimum bio content in diesel for transport to 15 percent from the 10 percent in a move to cut costly diesel imports.
"This is worthy news that saw short-covering at the close," said one trader with a Malaysian commodities brokerage.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange had pulled up 0.2 percent to end Friday at 2,247 ringgit ($609) a tonne, reversing losses in the morning session.
Total traded volume was 32,319 lots of 25 tonnes, against the usual 35,000 lots.
Traders had said that the market was hunting for clearer price direction after data from Malaysia's industry regulator and cargo surveyors pointed to weak February and March exports.
A second Kuala Lumpur trader sees benchmak palm's near-term support at 2,220 ringgit and immediate resistance at 2,270 ringgit.
The dissapointing overseas sales of palm oil from Malaysia, the world's No.2 producer, have sparked worries of whether price-sensitive buyers will continue to move away from the tropical oil in favour of soyoil, a common food and fuel substitute.
Palm imports by India, the world's top buyer of edible oil, fell 23 percent to 509,948 tonnes in February, data from the Solvent Extractors' Association of India (SEA) showed on Friday.
Malaysian palm oil prices, which set the tone for global prices, declined 1.8 percent over the week.
In competing vegetable oil markets, the most active September soybean oil contract on the Dalian Commodity Exchange fell 0.4 percent in late
Asian trade, while the U.S. soyoil contract for May rose 0.5 percent.
In other markets, Brent crude oil slipped to less than $57 a barrel after the West's energy watchdog said that a global oil glut was building with U.S. oil production showing no signs of slowing.
Palm, soy and crude oil prices at 1027 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR5 0 +0.00 0 2250 0
MY PALM OIL APR5 2246 +6.00 2229 2250 802
MY PALM OIL MAY5 2247 +4.00 2227 2251 18190
CHINA PALM OLEIN SEP5 4724 -26.00 4706 4756 322900
CHINA SOYOIL SEP5 5448 -24.00 5444 5490 316368
CBOT SOY OIL MAY5 31.02 +4.80 30.79 31.10 5202
INDIA PALM OIL MAR5 451.30 +4.80 444.60 455.50 1478
INDIA SOYOIL APR5 585.00 +8.85 575.00 586.40 39230
NYMEX CRUDE APR5 46.69 -0.36 46.52 47.28 29472
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 = 3.6870 Malaysian ringgit)
* Prices down 1.8 pct over the week
* Indonesia to increase bio content for diesel to 15 pct
* Palm oil to test support at 2,218 ringgit -technicals
16/03/2015 (Reuters) - Malaysian palm oil futures ended higher on Friday on prospects that top producer Indonesia will blend more palm into biodiesel this year, though concerns over dwindling demand still dragged the contract to its biggest weekly drop in a month.
Indonesia's chief economic minister said on Friday that it will increase the minimum bio content in diesel for transport to 15 percent from the 10 percent in a move to cut costly diesel imports.
"This is worthy news that saw short-covering at the close," said one trader with a Malaysian commodities brokerage.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange had pulled up 0.2 percent to end Friday at 2,247 ringgit ($609) a tonne, reversing losses in the morning session.
Total traded volume was 32,319 lots of 25 tonnes, against the usual 35,000 lots.
Traders had said that the market was hunting for clearer price direction after data from Malaysia's industry regulator and cargo surveyors pointed to weak February and March exports.
A second Kuala Lumpur trader sees benchmak palm's near-term support at 2,220 ringgit and immediate resistance at 2,270 ringgit.
The dissapointing overseas sales of palm oil from Malaysia, the world's No.2 producer, have sparked worries of whether price-sensitive buyers will continue to move away from the tropical oil in favour of soyoil, a common food and fuel substitute.
Palm imports by India, the world's top buyer of edible oil, fell 23 percent to 509,948 tonnes in February, data from the Solvent Extractors' Association of India (SEA) showed on Friday.
Malaysian palm oil prices, which set the tone for global prices, declined 1.8 percent over the week.
In competing vegetable oil markets, the most active September soybean oil contract on the Dalian Commodity Exchange fell 0.4 percent in late
Asian trade, while the U.S. soyoil contract for May rose 0.5 percent.
In other markets, Brent crude oil slipped to less than $57 a barrel after the West's energy watchdog said that a global oil glut was building with U.S. oil production showing no signs of slowing.
Palm, soy and crude oil prices at 1027 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR5 0 +0.00 0 2250 0
MY PALM OIL APR5 2246 +6.00 2229 2250 802
MY PALM OIL MAY5 2247 +4.00 2227 2251 18190
CHINA PALM OLEIN SEP5 4724 -26.00 4706 4756 322900
CHINA SOYOIL SEP5 5448 -24.00 5444 5490 316368
CBOT SOY OIL MAY5 31.02 +4.80 30.79 31.10 5202
INDIA PALM OIL MAR5 451.30 +4.80 444.60 455.50 1478
INDIA SOYOIL APR5 585.00 +8.85 575.00 586.40 39230
NYMEX CRUDE APR5 46.69 -0.36 46.52 47.28 29472
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 = 3.6870 Malaysian ringgit)