MARKET DEVELOPMENT
VEGOILS-Palm Snaps 4-Day Losing Streak As Buying Interest Trickles In
VEGOILS-Palm Snaps 4-Day Losing Streak As Buying Interest Trickles In
(Recasts to reflect change in prices, adds new trader quote)
* Benchmark prices post 1st gain in five days
* Palm oil still targets 2,118 ringgit -technicals
22/05/2015 (Reuters) - Malaysian palm oil futures ended higher on Thursday, recovering from the morning session and snapping four straight days of losses as weak prices attracted buying interest for the tropical oil.
Weak overseas oil and soy markets had dragged the benchmark contract down, which led to prices hitting their lowest in nearly three weeks on Wednesday, although robust export demand helped put a floor under prices.
"At this level demand is returning," said a trader with a local commodities brokerage in Malaysia. "Fresh buyers are entering the market after the recent sell off."
By Thursday's close, the benchmark August contract on the Bursa Malaysia Derivatives exchange had edged up 0.8 percent to 2,158 ringgit ($599.28) a tonne.
Total traded volume stood at 42,418 lots of 25 tonnes each, above the average 35,000 lots.
The start of the holy month of Ramadan next month, marked by communal fasting and feasting by Muslims, typically drives up consumption of edible oils and may underpin demand for palm in May and June.
"With production tapering circa 5 to 8 percent, demand leap-frogging 50 percent and the weaker ringgit...we anticipate prices to recover again," the Malaysian-based trader added.
Export data released by cargo surveyors on Wednesday showed an up to 53 percent surge in shipments of Malaysian palm oil between May 1-20, from the same period a month ago.
A turnaround in competing crude and soyoil markets also provided support.
Oil rose towards $66 a barrel on Thursday, gaining for a second day, supported by expectations that a global supply glut is starting to ease and by fighting in Iraq.
The U.S. July soyoil contract was up 0.8 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.4 percent.
Palm, soy and crude oil prices at 1022 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2155 +5.00 2137 2157 866
MY PALM OIL JUL5 2162 +13.00 2139 2168 7186
MY PALM OIL AUG5 2158 +16.00 2134 2165 21908
CHINA PALM OLEIN SEP5 4918 +0.00 4894 4952 517618
CHINA SOYOIL SEP5 5704 +24.00 5668 5724 539460
CBOT SOY OIL JUL5 32.45 +1.10 32.11 32.54 6504
INDIA PALM OIL MAY5 449.90 +1.10 448.20 450.50 539
INDIA SOYOIL JUN5 598.65 +2.10 595.70 599.50 20725
NYMEX CRUDE JUL5 59.74 +0.76 58.69 59.78 31248
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 = 3.6010 Malaysian ringgit)
($1 = 6.1968 Chinese yuan)
($1 = 63.67 Indian rupees)
* Benchmark prices post 1st gain in five days
* Palm oil still targets 2,118 ringgit -technicals
22/05/2015 (Reuters) - Malaysian palm oil futures ended higher on Thursday, recovering from the morning session and snapping four straight days of losses as weak prices attracted buying interest for the tropical oil.
Weak overseas oil and soy markets had dragged the benchmark contract down, which led to prices hitting their lowest in nearly three weeks on Wednesday, although robust export demand helped put a floor under prices.
"At this level demand is returning," said a trader with a local commodities brokerage in Malaysia. "Fresh buyers are entering the market after the recent sell off."
By Thursday's close, the benchmark August contract on the Bursa Malaysia Derivatives exchange had edged up 0.8 percent to 2,158 ringgit ($599.28) a tonne.
Total traded volume stood at 42,418 lots of 25 tonnes each, above the average 35,000 lots.
The start of the holy month of Ramadan next month, marked by communal fasting and feasting by Muslims, typically drives up consumption of edible oils and may underpin demand for palm in May and June.
"With production tapering circa 5 to 8 percent, demand leap-frogging 50 percent and the weaker ringgit...we anticipate prices to recover again," the Malaysian-based trader added.
Export data released by cargo surveyors on Wednesday showed an up to 53 percent surge in shipments of Malaysian palm oil between May 1-20, from the same period a month ago.
A turnaround in competing crude and soyoil markets also provided support.
Oil rose towards $66 a barrel on Thursday, gaining for a second day, supported by expectations that a global supply glut is starting to ease and by fighting in Iraq.
The U.S. July soyoil contract was up 0.8 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.4 percent.
Palm, soy and crude oil prices at 1022 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2155 +5.00 2137 2157 866
MY PALM OIL JUL5 2162 +13.00 2139 2168 7186
MY PALM OIL AUG5 2158 +16.00 2134 2165 21908
CHINA PALM OLEIN SEP5 4918 +0.00 4894 4952 517618
CHINA SOYOIL SEP5 5704 +24.00 5668 5724 539460
CBOT SOY OIL JUL5 32.45 +1.10 32.11 32.54 6504
INDIA PALM OIL MAY5 449.90 +1.10 448.20 450.50 539
INDIA SOYOIL JUN5 598.65 +2.10 595.70 599.50 20725
NYMEX CRUDE JUL5 59.74 +0.76 58.69 59.78 31248
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 = 3.6010 Malaysian ringgit)
($1 = 6.1968 Chinese yuan)
($1 = 63.67 Indian rupees)