MARKET DEVELOPMENT
VEGOILS-Palm Oil up on Weak Ringgit, Tracking Other Vegetable Oils
VEGOILS-Palm Oil up on Weak Ringgit, Tracking Other Vegetable Oils
* Palm oil sees uptrend for third consecutive day
* Weaker ringgit and other vegetable oils market lend support to palm
29/10/2015 (Reuters) - Malaysian palm oil rose on Thursday for a third day in a row, boosted by a weaker ringgit and tracking other vegetable oils.
The January benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange gained 0.2 percent to reach 2,345 ringgit ($547.39) a tonne at the midday break. Its uptrend however has been range bound due to conflicting market fundamentals.
"Today's market is higher as the ringgit went to 4.30 (against the dollar), U.S. CPOT soyoil and Dalian RBT palm olein were also up," said a trader in Kuala Lumpur.
"There are plus and minus factors on supply and demand, the market is on a conflicting movement and moving on a tight range."
Traded volume stood at 15,159 lots of 25 tonnes each, above the average 13,500 lots usually traded by the end of the morning session.
A weaker ringgit lends some support to palm prices, as it makes the vegetable oil cheaper for overseas buyers holding other currencies. It lost 0.4 percent against the dollar at midday, reaching an intraday high of 4.300.
Traders are holding bearish views for palm's demand, as exports to top consumers India and China are expected to drop.
However the El Nino weather phenomenon, which sees scorching weather across Asia, could reduce palm production and boost palm prices.
Palm oil faces resistance at 2,373 ringgit per tonne, and may retrace to support at 2,319 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
In other vegetable oil markets, the U.S. December soyoil contract rose 0.2 percent and the January soybean oil contract on the Dalian Commodity Exchange gained 0.3 percent.
Palm, soy and crude oil prices at 0432 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV5 2223 -28.00 2222 2269 313
MY PALM OIL DEC5 2299 -1.00 2294 2323 2104
MY PALM OIL JAN6 2345 +4.00 2340 2365 9415
CHINA PALM OLEIN JAN6 4450 +32.00 4422 4476 848274
CHINA SOYOIL JAN6 5552 +18.00 5516 5596 516744
CBOT SOY OIL DEC5 28.17 +0.00 28.09 28.24 2126
INDIA PALM OIL OCT5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL NOV5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE DEC5 45.73 -0.21 45.70 46.18 8398
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 = 4.2840 ringgit)
($1 = 65.1650 Indian rupees)
($1 = 6.3578 Chinese yuan)
* Weaker ringgit and other vegetable oils market lend support to palm
29/10/2015 (Reuters) - Malaysian palm oil rose on Thursday for a third day in a row, boosted by a weaker ringgit and tracking other vegetable oils.
The January benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange gained 0.2 percent to reach 2,345 ringgit ($547.39) a tonne at the midday break. Its uptrend however has been range bound due to conflicting market fundamentals.
"Today's market is higher as the ringgit went to 4.30 (against the dollar), U.S. CPOT soyoil and Dalian RBT palm olein were also up," said a trader in Kuala Lumpur.
"There are plus and minus factors on supply and demand, the market is on a conflicting movement and moving on a tight range."
Traded volume stood at 15,159 lots of 25 tonnes each, above the average 13,500 lots usually traded by the end of the morning session.
A weaker ringgit lends some support to palm prices, as it makes the vegetable oil cheaper for overseas buyers holding other currencies. It lost 0.4 percent against the dollar at midday, reaching an intraday high of 4.300.
Traders are holding bearish views for palm's demand, as exports to top consumers India and China are expected to drop.
However the El Nino weather phenomenon, which sees scorching weather across Asia, could reduce palm production and boost palm prices.
Palm oil faces resistance at 2,373 ringgit per tonne, and may retrace to support at 2,319 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
In other vegetable oil markets, the U.S. December soyoil contract rose 0.2 percent and the January soybean oil contract on the Dalian Commodity Exchange gained 0.3 percent.
Palm, soy and crude oil prices at 0432 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV5 2223 -28.00 2222 2269 313
MY PALM OIL DEC5 2299 -1.00 2294 2323 2104
MY PALM OIL JAN6 2345 +4.00 2340 2365 9415
CHINA PALM OLEIN JAN6 4450 +32.00 4422 4476 848274
CHINA SOYOIL JAN6 5552 +18.00 5516 5596 516744
CBOT SOY OIL DEC5 28.17 +0.00 28.09 28.24 2126
INDIA PALM OIL OCT5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL NOV5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE DEC5 45.73 -0.21 45.70 46.18 8398
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 = 4.2840 ringgit)
($1 = 65.1650 Indian rupees)
($1 = 6.3578 Chinese yuan)