MARKET DEVELOPMENT
VEGOILS-Palm Oil Edges up as Ringgit Retreats
VEGOILS-Palm Oil Edges up as Ringgit Retreats
* Malaysian ringgit retreats to 3.6370 per U.S. dollar
* Palm oil to test resistance at 2,203 ringgit -technicals
* Indonesia levy seen starting early June -Indonesia finmin
28/05/2015 (Reuters) - Malaysian palm oil futures edged up to a near two-week high on Wednesday as a weaker ringgit made the feedstock cheaper for overseas customers, but uncertainty about demand kept prices in a tight trading range.
Benchmark prices have pulled up from over three-week lows earlier this week, following a surge in Chinese and U.S. soy markets, with robust export demand so far in May also fuelling the rise. But whether prices can climb more will hinge on strong demand stretching into next month, traders said.
"The demand, and the soybean oil rally, it all came in unison. But the moment prices touched 2,190 ringgit, there was some resistance," said a trader with a local commodities brokerage in Malaysia.
"The big question mark is whether this export momentum will sustain in the month of June," the trader said.
"Today they might try again to see whether prices can sustain at 2,190 and 2,200 ringgit ... but I foresee a lot of selling pressure."
The August contract on the Bursa Malaysia Derivatives exchange had edged up 0.2 percent to 2,189 ringgit ($602.20) a tonne by the midday break. Prices earlier touched 2,198 ringgit, their highest since May 15.
Total traded volume stood at 11,495 lots of 25 tonnes each, below the average 12,500 lots.
The Malaysian ringgit was down 0.3 percent to 3.6370 per U.S. dollar by 0603 GMT.
Technical charts showed that palm oil is expected to test resistance at 2,203 ringgit per tonne, driven by a wave C, according to Reuters market analyst Wang Tao.
Meanwhile, Indonesia's finance minister Bambang Brodjonegoro told Reuters on Wednesday that the implementation date for its crude palm oil levies will likely be early June.
The regulation, which will force exporters in Indonesia to pay a levy of $50 per tonne on shipments of crude palm oil and $30 for processed palm oil, was initially slated to kick off in the fourth week of May.
The U.S. July soyoil contract rose 0.4 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 0.3 percent.
In other markets, crude futures rose on Wednesday to recover ground from sharp drops in the previous session, boosted by expectations that U.S. crude stocks could fall for a fourth straight week.
Palm, soy and crude oil prices at 0610 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2151 -16.00 2150 2180 81
MY PALM OIL JUL5 2188 +2.00 2166 2197 1237
MY PALM OIL AUG5 2189 +4.00 2179 2198 5263
CHINA PALM OLEIN SEP5 5088 +66.00 5040 5120 891620
CHINA SOYOIL SEP5 5754 +4.00 5744 5806 652654
CBOT SOY OIL JUL5 32.27 +1.70 32.02 32.30 3043
INDIA PALM OIL MAY5 454.50 +1.70 453.40 455.80 108
INDIA SOYOIL JUN5 598.85 +3.30 596.00 599.60 7465
NYMEX CRUDE JUL5 58.61 +0.58 58.25 58.68 8449
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 = 3.6350 ringgit)
($1 = 6.2043 Chinese yuan)
($1 = 64.07 Indian rupees)
* Palm oil to test resistance at 2,203 ringgit -technicals
* Indonesia levy seen starting early June -Indonesia finmin
28/05/2015 (Reuters) - Malaysian palm oil futures edged up to a near two-week high on Wednesday as a weaker ringgit made the feedstock cheaper for overseas customers, but uncertainty about demand kept prices in a tight trading range.
Benchmark prices have pulled up from over three-week lows earlier this week, following a surge in Chinese and U.S. soy markets, with robust export demand so far in May also fuelling the rise. But whether prices can climb more will hinge on strong demand stretching into next month, traders said.
"The demand, and the soybean oil rally, it all came in unison. But the moment prices touched 2,190 ringgit, there was some resistance," said a trader with a local commodities brokerage in Malaysia.
"The big question mark is whether this export momentum will sustain in the month of June," the trader said.
"Today they might try again to see whether prices can sustain at 2,190 and 2,200 ringgit ... but I foresee a lot of selling pressure."
The August contract on the Bursa Malaysia Derivatives exchange had edged up 0.2 percent to 2,189 ringgit ($602.20) a tonne by the midday break. Prices earlier touched 2,198 ringgit, their highest since May 15.
Total traded volume stood at 11,495 lots of 25 tonnes each, below the average 12,500 lots.
The Malaysian ringgit was down 0.3 percent to 3.6370 per U.S. dollar by 0603 GMT.
Technical charts showed that palm oil is expected to test resistance at 2,203 ringgit per tonne, driven by a wave C, according to Reuters market analyst Wang Tao.
Meanwhile, Indonesia's finance minister Bambang Brodjonegoro told Reuters on Wednesday that the implementation date for its crude palm oil levies will likely be early June.
The regulation, which will force exporters in Indonesia to pay a levy of $50 per tonne on shipments of crude palm oil and $30 for processed palm oil, was initially slated to kick off in the fourth week of May.
The U.S. July soyoil contract rose 0.4 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 0.3 percent.
In other markets, crude futures rose on Wednesday to recover ground from sharp drops in the previous session, boosted by expectations that U.S. crude stocks could fall for a fourth straight week.
Palm, soy and crude oil prices at 0610 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2151 -16.00 2150 2180 81
MY PALM OIL JUL5 2188 +2.00 2166 2197 1237
MY PALM OIL AUG5 2189 +4.00 2179 2198 5263
CHINA PALM OLEIN SEP5 5088 +66.00 5040 5120 891620
CHINA SOYOIL SEP5 5754 +4.00 5744 5806 652654
CBOT SOY OIL JUL5 32.27 +1.70 32.02 32.30 3043
INDIA PALM OIL MAY5 454.50 +1.70 453.40 455.80 108
INDIA SOYOIL JUN5 598.85 +3.30 596.00 599.60 7465
NYMEX CRUDE JUL5 58.61 +0.58 58.25 58.68 8449
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 = 3.6350 ringgit)
($1 = 6.2043 Chinese yuan)
($1 = 64.07 Indian rupees)