MARKET DEVELOPMENT
VEGOILS-Palm Oil Little Changed, Rising Supplies Curb Buying Sentiment
VEGOILS-Palm Oil Little Changed, Rising Supplies Curb Buying Sentiment
* Prices touch 2,211 rgt in early trade, highest since Apr 7
* Malaysian ringgit down 0.7 pct to 3.6220 per U.S. dollar
* Palm oil to rise to 2,235 ringgit -technicals
13/05/2015 (Reuters) - Malaysian palm oil futures were little changed on Tuesday, after briefly touching their highest in more than a month, as positive sentiment stemming from a jump in demand and a weaker ringgit were offset by concerns of rising palm supplies.
Data from cargo surveyors shows that palm oil shipments from the world's second-largest producer Malaysia surged between 41-45 percent in the first ten days of May compared to the same period in April, as buyers snapped up duty-free cargoes of the crude grade.
But signs of seasonally higher output and rising stockpiles in a report released by industry regulator the Malaysian Palm Oil Board dampened the boost from the buying interest, traders said. By end-April, palm inventories had climbed to a five-month high of 2.19 million tonnes.
"The higher production is keeping cash buyers at bay," said a palm trader with a local commodities brokerage in Kuala Lumpur. The trader attributed the recent price rally to support from grain prices and stronger demand.
The benchmark July contract on the Bursa Malaysia Derivatives exchange had edged up 0.1 percent to 2,196 ringgit ($606.63) a tonne by the midday break, failing to hold onto the morning's gains which saw prices touching 2,211 ringgit - their highest since April 7.
Total traded volume stood at 13,753 lots of 25 tonnes each, just above the average 12,500 lots.
The ringgit lost another 0.7 percent on Tuesday to trade at 3.6220 per U.S. dollar by 0543 GMT.
While export demand has shown signs of a strong recovery in May, some traders are sceptical it can be sustained, especially as speedy planting of oilseeds promise ample supplies of rival edible oils.
U.S. planting of soy sped ahead in major crop states in the week to Sunday as weather remained favourable for fieldwork, according to state crop reports that showed nationwide soybean seedings were 31 percent complete compared with a five-year average of 20 percent for early May.
The U.S. July soyoil contract fell 0.3 percent in early Asian trade. The most active September soybean oil
contract on the Dalian Commodity Exchange gained 0.1 percent.
In other markets, oil prices eased on Tuesday as the market remained oversupplied and the dollar gained on fears that Greece would not be able to repay its debts.
Palm, soy and crude oil prices at 0555 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 0 +0.00 0 2190 0
MY PALM OIL JUN5 2200 -1.00 2200 2216 981
MY PALM OIL JUL5 2196 +1.00 2195 2211 7956
CHINA PALM OLEIN SEP5 5086 +18.00 5064 5130 694910
CHINA SOYOIL SEP5 5886 +6.00 5868 5946 835278
CBOT SOY OIL JUL5 33.08 -1.00 33.03 33.28 4087
INDIA PALM OIL MAY5 450.50 -1.00 450.00 454.40 332
INDIA SOYOIL JUN5 603.25 -2.05 602.50 606.80 13035
NYMEX CRUDE JUN5 59.21 -0.04 59.12 59.35 4716
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 = 6.2093 Chinese yuan)
($1 = 64.16 Indian rupees)
* Malaysian ringgit down 0.7 pct to 3.6220 per U.S. dollar
* Palm oil to rise to 2,235 ringgit -technicals
13/05/2015 (Reuters) - Malaysian palm oil futures were little changed on Tuesday, after briefly touching their highest in more than a month, as positive sentiment stemming from a jump in demand and a weaker ringgit were offset by concerns of rising palm supplies.
Data from cargo surveyors shows that palm oil shipments from the world's second-largest producer Malaysia surged between 41-45 percent in the first ten days of May compared to the same period in April, as buyers snapped up duty-free cargoes of the crude grade.
But signs of seasonally higher output and rising stockpiles in a report released by industry regulator the Malaysian Palm Oil Board dampened the boost from the buying interest, traders said. By end-April, palm inventories had climbed to a five-month high of 2.19 million tonnes.
"The higher production is keeping cash buyers at bay," said a palm trader with a local commodities brokerage in Kuala Lumpur. The trader attributed the recent price rally to support from grain prices and stronger demand.
The benchmark July contract on the Bursa Malaysia Derivatives exchange had edged up 0.1 percent to 2,196 ringgit ($606.63) a tonne by the midday break, failing to hold onto the morning's gains which saw prices touching 2,211 ringgit - their highest since April 7.
Total traded volume stood at 13,753 lots of 25 tonnes each, just above the average 12,500 lots.
The ringgit lost another 0.7 percent on Tuesday to trade at 3.6220 per U.S. dollar by 0543 GMT.
While export demand has shown signs of a strong recovery in May, some traders are sceptical it can be sustained, especially as speedy planting of oilseeds promise ample supplies of rival edible oils.
U.S. planting of soy sped ahead in major crop states in the week to Sunday as weather remained favourable for fieldwork, according to state crop reports that showed nationwide soybean seedings were 31 percent complete compared with a five-year average of 20 percent for early May.
The U.S. July soyoil contract fell 0.3 percent in early Asian trade. The most active September soybean oil
contract on the Dalian Commodity Exchange gained 0.1 percent.
In other markets, oil prices eased on Tuesday as the market remained oversupplied and the dollar gained on fears that Greece would not be able to repay its debts.
Palm, soy and crude oil prices at 0555 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 0 +0.00 0 2190 0
MY PALM OIL JUN5 2200 -1.00 2200 2216 981
MY PALM OIL JUL5 2196 +1.00 2195 2211 7956
CHINA PALM OLEIN SEP5 5086 +18.00 5064 5130 694910
CHINA SOYOIL SEP5 5886 +6.00 5868 5946 835278
CBOT SOY OIL JUL5 33.08 -1.00 33.03 33.28 4087
INDIA PALM OIL MAY5 450.50 -1.00 450.00 454.40 332
INDIA SOYOIL JUN5 603.25 -2.05 602.50 606.80 13035
NYMEX CRUDE JUN5 59.21 -0.04 59.12 59.35 4716
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 = 6.2093 Chinese yuan)
($1 = 64.16 Indian rupees)