MARKET DEVELOPMENT
VEGOILS-Palm Falls to Sept Lows, But Selling Pressure Expected to Ease
VEGOILS-Palm Falls to Sept Lows, But Selling Pressure Expected to Ease
* Prices touch 2,070 ringgit in early trade, lowest since Sept. 22
* But selling pressure limited - trader
* Palm oil targets 2,039-2,060 ringgit range - technicals
* Malaysia CPO output seen stronger between April-June, July-Sept 2015 vs 2014 - USDA attache
30/04/2015 (Reuters) - Malaysian palm oil futures edged down to a fresh eight-month low on Wednesday, tracking overnight weakness in comparative edible oils, although traders expect selling pressure to reduce ahead of the long weekend.
Prices of Malaysian palm, which set the tone for global prices, are headed for their sixth straight day of losses on the back of strength in the ringgit and concerns over rising crude palm oil production in key growers. The ringgit retreated 0.1 percent on Wednesday after three days of gains.
Losses in rival soybean oil made for a weak open, market players said, but lack of follow-through selling allowed prices to rise to the higher end of the day's trading range by the midday break.
The benchmark July contract on the Bursa Malaysia Derivatives exchange dropped to 2,070 ringgit in early trade, its lowest since Sept. 22, before rising to 2,092 ringgit ($588) a tonne by the midday close - still down 0.1 percent from the previous session.
"The market realized that the sell-down since Friday was too steep, so there's some profit-taking which kept the market from falling too much," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"There might be some short-covering activities. Traditionally, a lot of traders prefer not to hold positions over a long holiday."
Malaysian markets will be closed from Friday for public holidays, and reopen on May 5.
Total traded volume on Wednesday stood at 15,281 lots of 25 tonnes each, above the usual 12,500 lots.
The U.S. July soyoil contract was down 0.1 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange fell 1 percent.
The U.S. Department of Agriculture expects stronger Malaysian palm production between April and September this year versus 2014, due to a recovery in flood-affected areas and better growing conditions in some parts, it said in an attache.
Crude palm oil production between April and June was seen at 4.80 million tonnes, higher than 4.78 million tonnes in 2014. Output between July-September was also seen stronger at 5.95 million tonnes versus 5.60 million tonnes last year.
In other markets, oil prices dipped on Wednesday as oversupply and weak demand outweighed uncertainty in Saudi Arabia where King Salman relieved the crown prince as well as several senior ministers and the chief executive of national oil company Saudi Aramco.
Palm, soy and crude oil prices at 0632 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2083 -15.00 2073 2095 74
MY PALM OIL JUN5 2098 -1.00 2076 2100 1303
MY PALM OIL JUL5 2092 -1.00 2070 2093 8672
CHINA PALM OLEIN SEP5 4844 -52.00 4830 4892 571996
CHINA SOYOIL SEP5 5646 -54.00 5640 5700 596576
CBOT SOY OIL JUL5 31.36 -1.10 31.34 31.51 5571
INDIA PALM OIL APR5 434.40 -1.10 433.40 435.40 601
INDIA SOYOIL JUN5 584.00 -3.15 582.90 587.30 19765
NYMEX CRUDE JUN5 56.92 -0.14 56.79 56.99 6441
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 = 3.5580 Malaysian ringgit)
($1 = 6.2070 Chinese yuan)
($1 = 63.30 Indian rupees)
* But selling pressure limited - trader
* Palm oil targets 2,039-2,060 ringgit range - technicals
* Malaysia CPO output seen stronger between April-June, July-Sept 2015 vs 2014 - USDA attache
30/04/2015 (Reuters) - Malaysian palm oil futures edged down to a fresh eight-month low on Wednesday, tracking overnight weakness in comparative edible oils, although traders expect selling pressure to reduce ahead of the long weekend.
Prices of Malaysian palm, which set the tone for global prices, are headed for their sixth straight day of losses on the back of strength in the ringgit and concerns over rising crude palm oil production in key growers. The ringgit retreated 0.1 percent on Wednesday after three days of gains.
Losses in rival soybean oil made for a weak open, market players said, but lack of follow-through selling allowed prices to rise to the higher end of the day's trading range by the midday break.
The benchmark July contract on the Bursa Malaysia Derivatives exchange dropped to 2,070 ringgit in early trade, its lowest since Sept. 22, before rising to 2,092 ringgit ($588) a tonne by the midday close - still down 0.1 percent from the previous session.
"The market realized that the sell-down since Friday was too steep, so there's some profit-taking which kept the market from falling too much," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"There might be some short-covering activities. Traditionally, a lot of traders prefer not to hold positions over a long holiday."
Malaysian markets will be closed from Friday for public holidays, and reopen on May 5.
Total traded volume on Wednesday stood at 15,281 lots of 25 tonnes each, above the usual 12,500 lots.
The U.S. July soyoil contract was down 0.1 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange fell 1 percent.
The U.S. Department of Agriculture expects stronger Malaysian palm production between April and September this year versus 2014, due to a recovery in flood-affected areas and better growing conditions in some parts, it said in an attache.
Crude palm oil production between April and June was seen at 4.80 million tonnes, higher than 4.78 million tonnes in 2014. Output between July-September was also seen stronger at 5.95 million tonnes versus 5.60 million tonnes last year.
In other markets, oil prices dipped on Wednesday as oversupply and weak demand outweighed uncertainty in Saudi Arabia where King Salman relieved the crown prince as well as several senior ministers and the chief executive of national oil company Saudi Aramco.
Palm, soy and crude oil prices at 0632 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2083 -15.00 2073 2095 74
MY PALM OIL JUN5 2098 -1.00 2076 2100 1303
MY PALM OIL JUL5 2092 -1.00 2070 2093 8672
CHINA PALM OLEIN SEP5 4844 -52.00 4830 4892 571996
CHINA SOYOIL SEP5 5646 -54.00 5640 5700 596576
CBOT SOY OIL JUL5 31.36 -1.10 31.34 31.51 5571
INDIA PALM OIL APR5 434.40 -1.10 433.40 435.40 601
INDIA SOYOIL JUN5 584.00 -3.15 582.90 587.30 19765
NYMEX CRUDE JUN5 56.92 -0.14 56.79 56.99 6441
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 = 3.5580 Malaysian ringgit)
($1 = 6.2070 Chinese yuan)
($1 = 63.30 Indian rupees)