MARKET DEVELOPMENT
VEGOILS-Palm Oil Rises in Tight Trade, Robust Exports Aid Sentiment
VEGOILS-Palm Oil Rises in Tight Trade, Robust Exports Aid Sentiment
(Updates prices, adds SGS exports)
* Malaysia's April 1-20 palm oil exports up 8-10 pct m/m-cargo surveyors
* Palm oil to fall to 2,137 ringgit -technicals
* Malaysian ringgit rises to 3.6200 per U.S. dollar
22/04/2015 (Reuters) - Malaysian palm oil futures rose in tight trade on Monday, lifted by robust overseas sales of the tropical oil, although a firm ringgit and bearish outlook on technicals put a lid on gains.
Exports of Malaysian palm products for April 1-20 rose 9.6 percent from a month earlier, cargo surveyor Intertek Testing Services reported, with buyers cutting back purchases of the crude grade to opt for more cargoes of processed palm olein instead.
Another cargo surveyor Societe Generale de Surveillance showed exports for the same period rose 8.3 percent. Malaysia will offer duty-free exports of crude palm oil in May.
"Although the ringgit was strong, exports in the last five days were up, that's why the market is a plus," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The Malaysian ringgit rose to 3.6200 per U.S. dollar by 1006 GMT. Last week the currency, in which palm is
priced in, rose 1.1 percent.
But ITS data showed shipments during April 1-20 jumped to 701,560 tonnes from 477,295 tonnes shipped between April 1 and April 15, defying the stronger ringgit, with exports of refined, bleached and deodorized palm olein rising 48 percent in the last five days.
The benchmark July contract on the Bursa Malaysia Derivatives exchange edged up 0.3 percent to 2,154 ringgit ($595) a tonne, with prices stuck between 2,147 ringgit and 2,174 ringgit.
Total traded volume stood at 39,756 lots of 25 tonnes, above the usual 35,000 lots.
Palm may continue to trade rangebound this week, traders said, with the market lacking a real driver to boost prices.
"Edible oil prices from China and the United States are up, but not on a strong scale. Our market will trade in a range of 2,100-2,200 ringgit over the next two-three days," the Kuala Lumpur-trader added.
Technicals looked weak. Palm oil may fall to 2,137 ringgit per tonne, as it failed to break a resistance at 2,165 ringgit, Reuters market analyst Wang Tao said.
Elsewhere, Indonesia's chief economic minister, Sofyan Djalil, told reporters on Monday that the country's planned $50 biodiesel levy may be signed into law by the president this week, but additional approvals were needed from the finance ministry. Djalil has given numerous timelines previously that have passed without results.
In other markets, oil prices eased from early highs to under $64 a barrel on Monday after Saudi Arabian Oil Minister Ali al-Naimi said production in the world's biggest crude exporter would stay near record peaks around 10 million barrels per day (bpd) in April.
In vegetable oil markets, the U.S. soyoil May contract rose 0.5 percent in late Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2191 +7.00 2185 2205 398
MY PALM OIL JUN5 2171 +8.00 2163 2188 7947
MY PALM OIL JUL5 2154 +6.00 2147 2174 20595
CHINA PALM OLEIN SEP5 4846 +96.00 4748 4848 897266
CHINA SOYOIL SEP5 5638 +60.00 5554 5652 1041920
CBOT SOY OIL MAY5 31.69 +1.50 31.49 31.80 5243
INDIA PALM OIL APR5 439.00 +1.50 437.00 441.00 422
INDIA SOYOIL APR5 602.80 -1.90 602.80 605.40 4655
NYMEX CRUDE MAY5 56.07 +0.33 55.98 56.65 4833
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 = 3.6200 Malaysian ringgit)
($1 = 6.2015 Chinese yuan)
($1 = 62.82 Indian rupees)
* Malaysia's April 1-20 palm oil exports up 8-10 pct m/m-cargo surveyors
* Palm oil to fall to 2,137 ringgit -technicals
* Malaysian ringgit rises to 3.6200 per U.S. dollar
22/04/2015 (Reuters) - Malaysian palm oil futures rose in tight trade on Monday, lifted by robust overseas sales of the tropical oil, although a firm ringgit and bearish outlook on technicals put a lid on gains.
Exports of Malaysian palm products for April 1-20 rose 9.6 percent from a month earlier, cargo surveyor Intertek Testing Services reported, with buyers cutting back purchases of the crude grade to opt for more cargoes of processed palm olein instead.
Another cargo surveyor Societe Generale de Surveillance showed exports for the same period rose 8.3 percent. Malaysia will offer duty-free exports of crude palm oil in May.
"Although the ringgit was strong, exports in the last five days were up, that's why the market is a plus," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The Malaysian ringgit rose to 3.6200 per U.S. dollar by 1006 GMT. Last week the currency, in which palm is
priced in, rose 1.1 percent.
But ITS data showed shipments during April 1-20 jumped to 701,560 tonnes from 477,295 tonnes shipped between April 1 and April 15, defying the stronger ringgit, with exports of refined, bleached and deodorized palm olein rising 48 percent in the last five days.
The benchmark July contract on the Bursa Malaysia Derivatives exchange edged up 0.3 percent to 2,154 ringgit ($595) a tonne, with prices stuck between 2,147 ringgit and 2,174 ringgit.
Total traded volume stood at 39,756 lots of 25 tonnes, above the usual 35,000 lots.
Palm may continue to trade rangebound this week, traders said, with the market lacking a real driver to boost prices.
"Edible oil prices from China and the United States are up, but not on a strong scale. Our market will trade in a range of 2,100-2,200 ringgit over the next two-three days," the Kuala Lumpur-trader added.
Technicals looked weak. Palm oil may fall to 2,137 ringgit per tonne, as it failed to break a resistance at 2,165 ringgit, Reuters market analyst Wang Tao said.
Elsewhere, Indonesia's chief economic minister, Sofyan Djalil, told reporters on Monday that the country's planned $50 biodiesel levy may be signed into law by the president this week, but additional approvals were needed from the finance ministry. Djalil has given numerous timelines previously that have passed without results.
In other markets, oil prices eased from early highs to under $64 a barrel on Monday after Saudi Arabian Oil Minister Ali al-Naimi said production in the world's biggest crude exporter would stay near record peaks around 10 million barrels per day (bpd) in April.
In vegetable oil markets, the U.S. soyoil May contract rose 0.5 percent in late Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2191 +7.00 2185 2205 398
MY PALM OIL JUN5 2171 +8.00 2163 2188 7947
MY PALM OIL JUL5 2154 +6.00 2147 2174 20595
CHINA PALM OLEIN SEP5 4846 +96.00 4748 4848 897266
CHINA SOYOIL SEP5 5638 +60.00 5554 5652 1041920
CBOT SOY OIL MAY5 31.69 +1.50 31.49 31.80 5243
INDIA PALM OIL APR5 439.00 +1.50 437.00 441.00 422
INDIA SOYOIL APR5 602.80 -1.90 602.80 605.40 4655
NYMEX CRUDE MAY5 56.07 +0.33 55.98 56.65 4833
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 = 3.6200 Malaysian ringgit)
($1 = 6.2015 Chinese yuan)
($1 = 62.82 Indian rupees)