MARKET DEVELOPMENT
VEGOILS-Palm Rises to Over 3-mth High as Ringgit Slumps to 9-yr Low
VEGOILS-Palm Rises to Over 3-mth High as Ringgit Slumps to 9-yr Low
* Prices touch 2,362 rgt, highest since March 5
* Ringgit slumps to 9-year low at 3.7660 per U.S. dollar
* Malaysia plans to implement B10 biodiesel by Oct- minister
09/06/2015 (Reuters) - Malaysian palm oil futures rose to their highest in over three months on Monday, supported by a slump in the ringgit to a nine-year low and plans by Malaysia to increase its biodiesel mandate to 10 percent by October.
The Malaysian ringgit hit 3.7660 per dollar early Monday, its lowest since Jan. 2006, after robust U.S. jobs data bolstered expectations of an interest rate hike by the Federal Reserve by the year-end.
Weakness in the Southeast Asian currency makes the ringgit-priced palm oil feedstock cheaper for overseas buyers.
But gains in palm futures were capped by lacklustre edible oil markets tracked by palm, traders said.
"Today the palm market is firming a bit on the back of weakness of the ringgit," said a trader with a foreign
commodities brokerage in Kuala Lumpur. "But the market cannot pull up much because overseas markets are not going up."
By the midday break, the August palm oil contract on the Bursa Malaysia Derivatives exchange was up 0.4 percent to 2,350 ringgit ($624.00) a tonne to head for its third straight day of gains, after touching 2,362 ringgit, their highest since March 5.
Total traded volume stood at 12,893 lots of 25 tonnes each,just above the usual 12,500 lots.
Malaysia, the world's second-largest palm grower plans to raise its biodiesel mandate to 10 percent by October this year, from 7 percent currently, plantation industries and commodities minister Douglas Uggah Embas said on Monday. The B10 programme is expected to consume 1 million tonnes of crude palm oil a year, the minister said.
The minister added that the six-magnitude quake which struck the Borneo state of Sabah on Friday did not cause major damage to palm plantations or mills. Sabah is Malaysia's biggest palm-growing state, and accounted for 31 percent of the country's total crude palm oil output of 19.7 million tonnes in 2014.
The U.S. Geological survey said the quake's epicentre was about 54 km (33 miles) from the state capital of Kota Kinabalu.
In competing vegetable oil markets, the U.S. July soyoil contract was down 0.3 percent by 0554 GMT, while the most active September soybean oil contract on the Dalian Commodity Exchange dropped 0.1 percent.
Crude oil prices fell on Monday as China's oil imports dropped sharply and markets were expected to be increasingly oversupplied following OPEC's decision to keep its production targets unchanged.
Palm, soy and crude oil prices at 0559 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +0.00 0 0 0
MY PALM OIL JUL5 2349 +6.00 2344 2364 546
MY PALM OIL AUG5 2350 +9.00 2342 2362 6028
CHINA PALM OLEIN JAN6 5362 +36.00 5324 5412 889510
CHINA SOYOIL SEP5 5784 -8.00 5766 5852 560716
CBOT SOY OIL JUL5 34.69 -0.50 34.57 34.76 2739
INDIA PALM OIL JUN5 462.20 -0.50 461.00 464.90 360
INDIA SOYOIL JUN5 613.05 -1.55 611.00 615.80 6035
NYMEX CRUDE JUL5 58.67 -0.46 58.49 58.97 7446
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 = 3.7660 ringgit)
($1 = 6.2053 Chinese yuan)
($1 = 64.12 Indian rupees)
* Ringgit slumps to 9-year low at 3.7660 per U.S. dollar
* Malaysia plans to implement B10 biodiesel by Oct- minister
09/06/2015 (Reuters) - Malaysian palm oil futures rose to their highest in over three months on Monday, supported by a slump in the ringgit to a nine-year low and plans by Malaysia to increase its biodiesel mandate to 10 percent by October.
The Malaysian ringgit hit 3.7660 per dollar early Monday, its lowest since Jan. 2006, after robust U.S. jobs data bolstered expectations of an interest rate hike by the Federal Reserve by the year-end.
Weakness in the Southeast Asian currency makes the ringgit-priced palm oil feedstock cheaper for overseas buyers.
But gains in palm futures were capped by lacklustre edible oil markets tracked by palm, traders said.
"Today the palm market is firming a bit on the back of weakness of the ringgit," said a trader with a foreign
commodities brokerage in Kuala Lumpur. "But the market cannot pull up much because overseas markets are not going up."
By the midday break, the August palm oil contract on the Bursa Malaysia Derivatives exchange was up 0.4 percent to 2,350 ringgit ($624.00) a tonne to head for its third straight day of gains, after touching 2,362 ringgit, their highest since March 5.
Total traded volume stood at 12,893 lots of 25 tonnes each,just above the usual 12,500 lots.
Malaysia, the world's second-largest palm grower plans to raise its biodiesel mandate to 10 percent by October this year, from 7 percent currently, plantation industries and commodities minister Douglas Uggah Embas said on Monday. The B10 programme is expected to consume 1 million tonnes of crude palm oil a year, the minister said.
The minister added that the six-magnitude quake which struck the Borneo state of Sabah on Friday did not cause major damage to palm plantations or mills. Sabah is Malaysia's biggest palm-growing state, and accounted for 31 percent of the country's total crude palm oil output of 19.7 million tonnes in 2014.
The U.S. Geological survey said the quake's epicentre was about 54 km (33 miles) from the state capital of Kota Kinabalu.
In competing vegetable oil markets, the U.S. July soyoil contract was down 0.3 percent by 0554 GMT, while the most active September soybean oil contract on the Dalian Commodity Exchange dropped 0.1 percent.
Crude oil prices fell on Monday as China's oil imports dropped sharply and markets were expected to be increasingly oversupplied following OPEC's decision to keep its production targets unchanged.
Palm, soy and crude oil prices at 0559 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +0.00 0 0 0
MY PALM OIL JUL5 2349 +6.00 2344 2364 546
MY PALM OIL AUG5 2350 +9.00 2342 2362 6028
CHINA PALM OLEIN JAN6 5362 +36.00 5324 5412 889510
CHINA SOYOIL SEP5 5784 -8.00 5766 5852 560716
CBOT SOY OIL JUL5 34.69 -0.50 34.57 34.76 2739
INDIA PALM OIL JUN5 462.20 -0.50 461.00 464.90 360
INDIA SOYOIL JUN5 613.05 -1.55 611.00 615.80 6035
NYMEX CRUDE JUL5 58.67 -0.46 58.49 58.97 7446
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 = 3.7660 ringgit)
($1 = 6.2053 Chinese yuan)
($1 = 64.12 Indian rupees)