MARKET DEVELOPMENT
VEGOILS-Palm Touches Highest in Nearly 2 Weeks, Follows Overseas Soyoil Markets
VEGOILS-Palm Touches Highest in Nearly 2 Weeks, Follows Overseas Soyoil Markets
* Palm lifted by jump in China, U.S. soyoil markets
* Malaysia May 1-25 palm exports rise 53-55 pct -cargo surveyors
* Palm oil to climb to 2,203 ringgit -technicals
27/05/2015 (Reuters) - Malaysian palm oil futures rose to their highest in nearly two weeks on Tuesday, pulling up from three-week lows in the previous session, boosted by a jump in overseas edible oil markets and strong export demand.
Traders said overnight gains in U.S. and Chinese soyoil have paved the way for palm to rise, after Malaysian exports surged in the May 1-25 period.
The U.S. July soyoil contract was up 2.1 percent in early Asian trade after reopening following the U.S. Memorial Day holiday. The most active September soybean oil contract on the Dalian Commodity Exchange had climbed 2.6 percent by 0545 GMT, after rising as high as 5,820 yuan ($938.12).
Palm typically tracks rival soyoil, a common food and fuel substitute.
"Our market could not move much because soybean oil didn't move in the last few days. So when these overseas vegetable oil markets went up, palm just followed," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"The immediate resistance for palm is now 2,200 ringgit," the trader added. "If it can hold above that, then it may move into a new territory."
The benchmark August contract on the Bursa Malaysia Derivatives exchange touched an intraday high of 2,192 ringgit, its highest since May 15, before settling at 2,189 ringgit ($604.70) a tonne by the midday break - up 2.4 percent.
Prices on Monday had dropped to 2,121 ringgit, the lowest level for this month.
Total traded volume stood at 22,233 lots of 25 tonnes each, well above the average 12,500 lots.
Export data released from cargo surveyor Intertek Testing Services reported a 52.9-percent jump in Malaysian palm oil shipments in the first 25 days compared to the same period a month ago, with purchases of crude palm oil rising nearly tenfold.
Another cargo surveyor Societe Generale de Surveillance reported a 55 percent increase for the same period to 1.4 million tonnes shipped.
Technical charts were also supportive. Palm oil may rise to 2,203 ringgit per tonne, as it has cleared resistance at 2,183 ringgit, according to Reuters market analyst Wang Tao.
In other markets, crude oil prices were broadly unchanged on Tuesday from their previous settlement as ample supply offset firm demand, but analysts said the strengthening U.S. dollar meant a recent oil rally was running out of steam.
Palm, soy and crude oil prices at 0545 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2168 +31.00 2160 2168 45
MY PALM OIL JUL5 2190 +47.00 2158 2191 1994
MY PALM OIL AUG5 2189 +51.00 2155 2192 13220
CHINA PALM OLEIN SEP5 5080 +176.00 4918 5090 700950
CHINA SOYOIL SEP5 5804 +144.00 5662 5820 729636
CBOT SOY OIL JUL5 32.31 +3.00 31.59 32.33 7761
INDIA PALM OIL MAY5 452.70 +3.00 452.00 455.00 183
INDIA SOYOIL JUN5 597.40 +2.85 596.30 599.70 8560
NYMEX CRUDE JUL5 59.89 +0.17 59.10 60.25 43679
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 ringgit)
($1 = 6.2039 Chinese yuan)
($1 = 63.78 Indian rupees)
* Malaysia May 1-25 palm exports rise 53-55 pct -cargo surveyors
* Palm oil to climb to 2,203 ringgit -technicals
27/05/2015 (Reuters) - Malaysian palm oil futures rose to their highest in nearly two weeks on Tuesday, pulling up from three-week lows in the previous session, boosted by a jump in overseas edible oil markets and strong export demand.
Traders said overnight gains in U.S. and Chinese soyoil have paved the way for palm to rise, after Malaysian exports surged in the May 1-25 period.
The U.S. July soyoil contract was up 2.1 percent in early Asian trade after reopening following the U.S. Memorial Day holiday. The most active September soybean oil contract on the Dalian Commodity Exchange had climbed 2.6 percent by 0545 GMT, after rising as high as 5,820 yuan ($938.12).
Palm typically tracks rival soyoil, a common food and fuel substitute.
"Our market could not move much because soybean oil didn't move in the last few days. So when these overseas vegetable oil markets went up, palm just followed," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"The immediate resistance for palm is now 2,200 ringgit," the trader added. "If it can hold above that, then it may move into a new territory."
The benchmark August contract on the Bursa Malaysia Derivatives exchange touched an intraday high of 2,192 ringgit, its highest since May 15, before settling at 2,189 ringgit ($604.70) a tonne by the midday break - up 2.4 percent.
Prices on Monday had dropped to 2,121 ringgit, the lowest level for this month.
Total traded volume stood at 22,233 lots of 25 tonnes each, well above the average 12,500 lots.
Export data released from cargo surveyor Intertek Testing Services reported a 52.9-percent jump in Malaysian palm oil shipments in the first 25 days compared to the same period a month ago, with purchases of crude palm oil rising nearly tenfold.
Another cargo surveyor Societe Generale de Surveillance reported a 55 percent increase for the same period to 1.4 million tonnes shipped.
Technical charts were also supportive. Palm oil may rise to 2,203 ringgit per tonne, as it has cleared resistance at 2,183 ringgit, according to Reuters market analyst Wang Tao.
In other markets, crude oil prices were broadly unchanged on Tuesday from their previous settlement as ample supply offset firm demand, but analysts said the strengthening U.S. dollar meant a recent oil rally was running out of steam.
Palm, soy and crude oil prices at 0545 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2168 +31.00 2160 2168 45
MY PALM OIL JUL5 2190 +47.00 2158 2191 1994
MY PALM OIL AUG5 2189 +51.00 2155 2192 13220
CHINA PALM OLEIN SEP5 5080 +176.00 4918 5090 700950
CHINA SOYOIL SEP5 5804 +144.00 5662 5820 729636
CBOT SOY OIL JUL5 32.31 +3.00 31.59 32.33 7761
INDIA PALM OIL MAY5 452.70 +3.00 452.00 455.00 183
INDIA SOYOIL JUN5 597.40 +2.85 596.30 599.70 8560
NYMEX CRUDE JUL5 59.89 +0.17 59.10 60.25 43679
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 ringgit)
($1 = 6.2039 Chinese yuan)
($1 = 63.78 Indian rupees)