MARKET DEVELOPMENT
VEGOILS-Palm Ends 3-day Winning Streak as Ringgit Rebounds
VEGOILS-Palm Ends 3-day Winning Streak as Ringgit Rebounds
* Volatile ringgit, technicals, to keep prices in range - traders
* Malaysian ringgit rebounds to 3.6110 per U.S. dollar
* Palm oil to pick up to 2,171 ringgit before falling - technicals
23/04/2015 (Reuters) - Malaysian palm oil futures fell on Wednesday, ending a three-day winning streak, as the ringgit rose and technical charts took a bearish turn, although traders expect prices to stay in a 2,100-2,200 ringgit range in the near term.
Benchmark prices had risen on Tuesday to their highest level in nearly two weeks as the ringgit retreated and a promising technical outlook stoked buying interest.
By the midday break, the benchmark July contract on the Bursa Malaysia Derivatives exchange had dropped 1.4 percent to 2,142 ringgit ($593) a tonne, after trading between 2,139 and 2,163 ringgit.
"The ringgit is very volatile. Today it strengthened to 3.61 and the market decisively broke 2,150 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Palm is moving in this technical range with a downside trend and may come under pressure. The immediate range will be 2,100-2,200 ringgit over the next 2 to 3 days," the trader added.
Total traded volume stood at 20,721 lots of 25 tonnes, much higher than the average 12,500 lots.
By 0503 GMT the ringgit had risen 0.7 percent to 3.6110 per dollar, advancing from the 3.6510 touched on Tuesday.
Technicals showed that palm oil could rise modestly to 2,171 ringgit per tonne before retesting support at 2,152 ringgit, as indicated by a rising wedge and a Fibonacci retracement analysis, Reuters market analyst Wang Tao said.
Rival vegetable oil markets in the United States and China, commonly tracked by palm, were also weak on Wednesday, adding to the pressure on the tropical oil.
The U.S. May soyoil contract fell 0.8 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange lost 0.5 percent.
Crude oil prices fell on Wednesday as Middle East tension eased after Saudi Arabia ended a military campaign in Yemen.
Palm, soy and crude oil prices at 0503 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2172 -31.00 2172 2208 207
MY PALM OIL JUN5 2157 -33.00 2155 2189 2624
MY PALM OIL JUL5 2142 -31.00 2139 2163 13737
CHINA PALM OLEIN SEP5 4876 -2.00 4854 4934 668270
CHINA SOYOIL SEP5 5628 -30.00 5606 5716 799732
CBOT SOY OIL MAY5 31.58 -1.90 31.44 31.85 5820
INDIA PALM OIL APR5 438.00 -1.90 437.00 438.30 85
INDIA SOYOIL JUN5 581.60 -2.55 581.50 582.80 4090
NYMEX CRUDE JUN5 56.03 -0.57 55.85 56.54 11079
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 = 3.6130 Malaysian ringgit)
($1 = 6.1976 Chinese yuan)
($1 = 62.76 Indian rupees)
* Malaysian ringgit rebounds to 3.6110 per U.S. dollar
* Palm oil to pick up to 2,171 ringgit before falling - technicals
23/04/2015 (Reuters) - Malaysian palm oil futures fell on Wednesday, ending a three-day winning streak, as the ringgit rose and technical charts took a bearish turn, although traders expect prices to stay in a 2,100-2,200 ringgit range in the near term.
Benchmark prices had risen on Tuesday to their highest level in nearly two weeks as the ringgit retreated and a promising technical outlook stoked buying interest.
By the midday break, the benchmark July contract on the Bursa Malaysia Derivatives exchange had dropped 1.4 percent to 2,142 ringgit ($593) a tonne, after trading between 2,139 and 2,163 ringgit.
"The ringgit is very volatile. Today it strengthened to 3.61 and the market decisively broke 2,150 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"Palm is moving in this technical range with a downside trend and may come under pressure. The immediate range will be 2,100-2,200 ringgit over the next 2 to 3 days," the trader added.
Total traded volume stood at 20,721 lots of 25 tonnes, much higher than the average 12,500 lots.
By 0503 GMT the ringgit had risen 0.7 percent to 3.6110 per dollar, advancing from the 3.6510 touched on Tuesday.
Technicals showed that palm oil could rise modestly to 2,171 ringgit per tonne before retesting support at 2,152 ringgit, as indicated by a rising wedge and a Fibonacci retracement analysis, Reuters market analyst Wang Tao said.
Rival vegetable oil markets in the United States and China, commonly tracked by palm, were also weak on Wednesday, adding to the pressure on the tropical oil.
The U.S. May soyoil contract fell 0.8 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange lost 0.5 percent.
Crude oil prices fell on Wednesday as Middle East tension eased after Saudi Arabia ended a military campaign in Yemen.
Palm, soy and crude oil prices at 0503 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2172 -31.00 2172 2208 207
MY PALM OIL JUN5 2157 -33.00 2155 2189 2624
MY PALM OIL JUL5 2142 -31.00 2139 2163 13737
CHINA PALM OLEIN SEP5 4876 -2.00 4854 4934 668270
CHINA SOYOIL SEP5 5628 -30.00 5606 5716 799732
CBOT SOY OIL MAY5 31.58 -1.90 31.44 31.85 5820
INDIA PALM OIL APR5 438.00 -1.90 437.00 438.30 85
INDIA SOYOIL JUN5 581.60 -2.55 581.50 582.80 4090
NYMEX CRUDE JUN5 56.03 -0.57 55.85 56.54 11079
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 = 3.6130 Malaysian ringgit)
($1 = 6.1976 Chinese yuan)
($1 = 62.76 Indian rupees)