MARKET DEVELOPMENT
VEGOILS-Palm Up For 3rd Day, Hits Near 2-week High as Ringgit Retreats
VEGOILS-Palm Up For 3rd Day, Hits Near 2-week High as Ringgit Retreats
* Weak ringgit, supportive tech charts boost buying interest
* Malaysia's April 1-20 palm oil exports 8-10 pct stronger m/m
* Palm oil to approach resistance at 2,210 ringgit -technicals
22/04/2015 (Reuters) - Malaysian palm oil futures extended their gains into a third session and rose to
the highest in nearly two weeks on Tuesday as the ringgit retreated, while a promising technical outlook also stoked buying interest.
The Malaysian ringgit fell 0.6 percent to 3.643 per dollar by 0450 GMT, after firming over the past three days, making the ringgit-priced tropical oil cheaper for holders of other currencies.
"There's weakness in the ringgit which provided support, and strength in palm's intraday charts which gave some buying interest," said a trader with a foreign commodities brokerage in Kuala Lumpur. "The better exports also gave some underlying support," the trader added.
Cargo surveyors reported Malaysia's overseas sales of palm rose between 8-10 percent between April 1-20 versus the corresponding period a month ago, as investors snapped up bigger shipments of processed palm.
The benchmark July contract on the Bursa Malaysia Derivatives exchange rose 1.5 percent to 2,188 ringgit ($601) a tonne by the midday break. It hit 2,193 ringgit earlier, the highest since April 8.
Total traded volume stood at 21,767 lots of 25 tonnes, well above the average 12,500 lots.
Technical charts show palm is expected to approach a resistance at 2,210 ringgit, as indicated by its wave pattern and a Fibonacci retracement analysis, Reuters market analyst Wang Tao said.
While demand for palm oil has recovered on a month-on-month basis, export volumes are not as strong as in 2014. Shipments of Malaysian palm were at 722,170 tonnes between April 1-20 in 2014, versus 701,560 tonnes this year, according to ITS.
However, market players say prices have been kept supported with sellers refusing to sell when palm falls below a five-month support of between 2,080-2,100 ringgit.
"Of course the bearish factors are there. Demand is not as good as last year, exports are not that great," the Kuala Lumpur trader added. "But at the same time when prices go below 2,100 ringgit, the selling momentum goes down."
In other markets, oil prices dipped but remained near a 2015 peak reached last week as expectations of another rise in U.S. stockpiles and near-record-high Saudi Arabian output were balanced by rising tension in the Middle East.
In vegetable oil markets, the U.S. soyoil May contract rose 0.8 percent in early Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent.
Palm, soy and crude oil prices at 0518 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2219 +29.00 2200 2222 304
MY PALM OIL JUN5 2203 +30.00 2178 2208 4499
MY PALM OIL JUL5 2188 +32.00 2161 2193 12069
CHINA PALM OLEIN SEP5 4908 +100.00 4812 4926 860716
CHINA SOYOIL SEP5 5680 +72.00 5608 5690 856718
CBOT SOY OIL MAY5 31.84 +2.40 31.55 31.87 8058
INDIA PALM OIL APR5 441.30 +2.40 441.00 442.90 127
INDIA SOYOIL JUN5 586.20 +2.15 585.00 587.00 7145
NYMEX CRUDE MAY5 56.34 -0.04 56.14 56.41 395
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 = 3.6430 Malaysian ringgit)
($1 = 6.2019 Chinese yuan)
($1 = 63.07 Indian rupees)
* Malaysia's April 1-20 palm oil exports 8-10 pct stronger m/m
* Palm oil to approach resistance at 2,210 ringgit -technicals
22/04/2015 (Reuters) - Malaysian palm oil futures extended their gains into a third session and rose to
the highest in nearly two weeks on Tuesday as the ringgit retreated, while a promising technical outlook also stoked buying interest.
The Malaysian ringgit fell 0.6 percent to 3.643 per dollar by 0450 GMT, after firming over the past three days, making the ringgit-priced tropical oil cheaper for holders of other currencies.
"There's weakness in the ringgit which provided support, and strength in palm's intraday charts which gave some buying interest," said a trader with a foreign commodities brokerage in Kuala Lumpur. "The better exports also gave some underlying support," the trader added.
Cargo surveyors reported Malaysia's overseas sales of palm rose between 8-10 percent between April 1-20 versus the corresponding period a month ago, as investors snapped up bigger shipments of processed palm.
The benchmark July contract on the Bursa Malaysia Derivatives exchange rose 1.5 percent to 2,188 ringgit ($601) a tonne by the midday break. It hit 2,193 ringgit earlier, the highest since April 8.
Total traded volume stood at 21,767 lots of 25 tonnes, well above the average 12,500 lots.
Technical charts show palm is expected to approach a resistance at 2,210 ringgit, as indicated by its wave pattern and a Fibonacci retracement analysis, Reuters market analyst Wang Tao said.
While demand for palm oil has recovered on a month-on-month basis, export volumes are not as strong as in 2014. Shipments of Malaysian palm were at 722,170 tonnes between April 1-20 in 2014, versus 701,560 tonnes this year, according to ITS.
However, market players say prices have been kept supported with sellers refusing to sell when palm falls below a five-month support of between 2,080-2,100 ringgit.
"Of course the bearish factors are there. Demand is not as good as last year, exports are not that great," the Kuala Lumpur trader added. "But at the same time when prices go below 2,100 ringgit, the selling momentum goes down."
In other markets, oil prices dipped but remained near a 2015 peak reached last week as expectations of another rise in U.S. stockpiles and near-record-high Saudi Arabian output were balanced by rising tension in the Middle East.
In vegetable oil markets, the U.S. soyoil May contract rose 0.8 percent in early Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent.
Palm, soy and crude oil prices at 0518 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2219 +29.00 2200 2222 304
MY PALM OIL JUN5 2203 +30.00 2178 2208 4499
MY PALM OIL JUL5 2188 +32.00 2161 2193 12069
CHINA PALM OLEIN SEP5 4908 +100.00 4812 4926 860716
CHINA SOYOIL SEP5 5680 +72.00 5608 5690 856718
CBOT SOY OIL MAY5 31.84 +2.40 31.55 31.87 8058
INDIA PALM OIL APR5 441.30 +2.40 441.00 442.90 127
INDIA SOYOIL JUN5 586.20 +2.15 585.00 587.00 7145
NYMEX CRUDE MAY5 56.34 -0.04 56.14 56.41 395
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 = 3.6430 Malaysian ringgit)
($1 = 6.2019 Chinese yuan)
($1 = 63.07 Indian rupees)