MARKET DEVELOPMENT
VEGOILS-Palm Oil Down on Stronger Ringgit, Market Correction After Two Week Rise
VEGOILS-Palm Oil Down on Stronger Ringgit, Market Correction After Two Week Rise
* Palm prices fall 0.6 percent
* Prices to see support at 2,100 ringgit -trader
18/09/2015 (Reuters) - Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.
The benchmark November palm oil contract on the Bursa Malaysia Derivatives Exchange was 0.6 percent lower by the midday break at 2,135 ringgit ($501.88) a tonne.
Traded volume stood at 30,846 lots of 25 tonnes each, more than double the average 13,500 lots usually traded at the end of the morning session.
The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.
"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."
The ringgit strengthened against the dollar on Thursday by 0.6 percent, reaching 4.2540 per dollar at the midday trade. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.
Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao. In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was up 0.2 percent, while the U.S. December soyoil contract lost 0.9 percent.
Crude oil prices saw dips on Thursday due to new signs of weakness in Asian economies, though prices largely held on due to a large jump in the previous session after a U.S. stock draw.
Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.
Palm, soy and crude oil prices at 0449 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT5 2059 -48.00 2052 2095 191
MY PALM OIL NOV5 2104 -44.00 2091 2135 7152
MY PALM OIL DEC5 2135 -57.00 2125 2178 14574
CHINA PALM OLEIN JAN6 4284 +0.00 4270 4328 784592
CHINA SOYOIL JAN6 5404 +12.00 5384 5430 410742
CBOT SOY OIL DEC5 26.67 +0.00 26.64 26.91 3357
INDIA PALM OIL SEP5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL OCT5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE OCT5 47.15 +0.00 46.96 47.57 10643
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 = 4.2540 ringgit)
($1 = 66.2881 Indian rupees)
($1 = 6.3665 Chinese yuan)
18/09/2015 (Reuters) - Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.
The benchmark November palm oil contract on the Bursa Malaysia Derivatives Exchange was 0.6 percent lower by the midday break at 2,135 ringgit ($501.88) a tonne.
Traded volume stood at 30,846 lots of 25 tonnes each, more than double the average 13,500 lots usually traded at the end of the morning session.
The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.
"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."
The ringgit strengthened against the dollar on Thursday by 0.6 percent, reaching 4.2540 per dollar at the midday trade. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.
Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao. In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was up 0.2 percent, while the U.S. December soyoil contract lost 0.9 percent.
Crude oil prices saw dips on Thursday due to new signs of weakness in Asian economies, though prices largely held on due to a large jump in the previous session after a U.S. stock draw.
Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.
Palm, soy and crude oil prices at 0449 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT5 2059 -48.00 2052 2095 191
MY PALM OIL NOV5 2104 -44.00 2091 2135 7152
MY PALM OIL DEC5 2135 -57.00 2125 2178 14574
CHINA PALM OLEIN JAN6 4284 +0.00 4270 4328 784592
CHINA SOYOIL JAN6 5404 +12.00 5384 5430 410742
CBOT SOY OIL DEC5 26.67 +0.00 26.64 26.91 3357
INDIA PALM OIL SEP5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL OCT5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE OCT5 47.15 +0.00 46.96 47.57 10643
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 = 4.2540 ringgit)
($1 = 66.2881 Indian rupees)
($1 = 6.3665 Chinese yuan)