MARKET DEVELOPMENT
VEGOILS-Palm Rallies on Anticipation of Weaker Ringgit, Indian Demand
VEGOILS-Palm Rallies on Anticipation of Weaker Ringgit, Indian Demand
(Recasts, adds trader quote, Indonesian minister on levy)
* Ringgit seen dropping further, India may buy more olein
* Malaysian ringgit retreats to 7-week low of 3.7055
* Indonesian CPO levy may start 2nd week of June -minister
05/06/2015 (Reuters) - Malaysian palm oil futures ended higher on Thursday in anticipation the ringgit will
continue to retreat and on market talk the world's biggest edible oil consumer India will ramp up purchases of refined palm oil.
August palm oil on the Bursa Malaysia Derivatives exchange closed up 1 percent at 2,319 ringgit ($627.60) a tonne, reversing a dip as low as 2,279 ringgit in early trade.
Total traded volume stood at 32,597 lots of 25 tonnes each, below the average 35,000 lots.
"The market anticipates further weakness in the ringgit," said a trader with a local commodities brokerage in Malaysia.
"There were rumours that India will further increase their buying momentum in June and July, with olein being the cheaper oil in the world's vegetable oil market," the trader added.
Palm prices in Malaysia, which set the tone for global prices, jumped to a three-month top of 2,349 ringgit per tonne on Tuesday, tracking soy markets which rallied on increased biodiesel targets in the United States, indicating demand for the edible oil would rise.
The rally lost steam as soyoil prices in the United States and China eased, and as oil prices slipped nearly 3 percent overnight. Low crude oil prices dent demand for palm oil by making the latter less attractive for biofuel blending.
U.S. July soyoil was down 0.4 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange lost 1 percent.
Crude oil extended losses ahead of a key OPEC meeting to decide production policy at a time of huge global oversupply.
A drop in the Malaysian ringgit helped underpin palm as it made the ringgit-priced commodity cheaper for
overseas buyers. The Southeast Asian currency was down 0.3 percent after hitting a seven-week low of 3.7055 on Thursday.
Meanwhile, Indonesia's Coordinating Minister of Economic Affairs Sofyan Djalil told Reuters on Wednesday the top producer's crude palm oil levy may implemented by the second week of June. Senior government ministers had said the levy would be introduced in the fourth week of May.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +26.00 0 2288 0
MY PALM OIL JUL5 2317 +26.00 2279 2320 2049
MY PALM OIL AUG5 2319 +25.00 2279 2325 18885
CHINA PALM OLEIN SEP5 5126 -72.00 5064 5168 654472
CHINA SOYOIL SEP5 5822 -60.00 5768 5866 663920
CBOT SOY OIL JUL5 34.58 +0.50 34.41 34.78 9563
INDIA PALM OIL JUN5 462.00 +0.50 461.20 463.90 623
INDIA SOYOIL JUN5 618.70 -2.35 618.30 621.70 14715
NYMEX CRUDE JUL5 59.90 +0.26 59.05 59.94 34918
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 = 3.6950 ringgit)
($1 = 6.2010 Chinese yuan)
($1 = 64.03 Indian rupees)
* Ringgit seen dropping further, India may buy more olein
* Malaysian ringgit retreats to 7-week low of 3.7055
* Indonesian CPO levy may start 2nd week of June -minister
05/06/2015 (Reuters) - Malaysian palm oil futures ended higher on Thursday in anticipation the ringgit will
continue to retreat and on market talk the world's biggest edible oil consumer India will ramp up purchases of refined palm oil.
August palm oil on the Bursa Malaysia Derivatives exchange closed up 1 percent at 2,319 ringgit ($627.60) a tonne, reversing a dip as low as 2,279 ringgit in early trade.
Total traded volume stood at 32,597 lots of 25 tonnes each, below the average 35,000 lots.
"The market anticipates further weakness in the ringgit," said a trader with a local commodities brokerage in Malaysia.
"There were rumours that India will further increase their buying momentum in June and July, with olein being the cheaper oil in the world's vegetable oil market," the trader added.
Palm prices in Malaysia, which set the tone for global prices, jumped to a three-month top of 2,349 ringgit per tonne on Tuesday, tracking soy markets which rallied on increased biodiesel targets in the United States, indicating demand for the edible oil would rise.
The rally lost steam as soyoil prices in the United States and China eased, and as oil prices slipped nearly 3 percent overnight. Low crude oil prices dent demand for palm oil by making the latter less attractive for biofuel blending.
U.S. July soyoil was down 0.4 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange lost 1 percent.
Crude oil extended losses ahead of a key OPEC meeting to decide production policy at a time of huge global oversupply.
A drop in the Malaysian ringgit helped underpin palm as it made the ringgit-priced commodity cheaper for
overseas buyers. The Southeast Asian currency was down 0.3 percent after hitting a seven-week low of 3.7055 on Thursday.
Meanwhile, Indonesia's Coordinating Minister of Economic Affairs Sofyan Djalil told Reuters on Wednesday the top producer's crude palm oil levy may implemented by the second week of June. Senior government ministers had said the levy would be introduced in the fourth week of May.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +26.00 0 2288 0
MY PALM OIL JUL5 2317 +26.00 2279 2320 2049
MY PALM OIL AUG5 2319 +25.00 2279 2325 18885
CHINA PALM OLEIN SEP5 5126 -72.00 5064 5168 654472
CHINA SOYOIL SEP5 5822 -60.00 5768 5866 663920
CBOT SOY OIL JUL5 34.58 +0.50 34.41 34.78 9563
INDIA PALM OIL JUN5 462.00 +0.50 461.20 463.90 623
INDIA SOYOIL JUN5 618.70 -2.35 618.30 621.70 14715
NYMEX CRUDE JUL5 59.90 +0.26 59.05 59.94 34918
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 = 3.6950 ringgit)
($1 = 6.2010 Chinese yuan)
($1 = 64.03 Indian rupees)