MARKET DEVELOPMENT
VEGOILS-Palm Oil Falls on High Stocks, Slow Export Demand
VEGOILS-Palm Oil Falls on High Stocks, Slow Export Demand
* Palm falls for a third consecutive session
* End-November inventories forecast to stay at current high levels
(Updates prices)
24/11/2015 (Reuters) - Malaysian palm oil futures fell for a third session in a row on Monday, with buying interest dampened by high inventories and expectations of soft export demand.
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to 2,284 ringgit ($531.04) a tonne at the close of trade.
"People still feel that stocks are too high. For this month at end-November they are expecting stocks at similar levels, putting a cap on prices," said a trader based in Kuala Lumpur.
"Unless we start seeing stocks being reduced, prices will be in range."
Palm oil prices have traded in a 126-ringgit range between 2,260 ringgit and 2,386 ringgit since mid-October.
Traders expect only a minimal rise in exports, when data from cargo surveyor Intertek Testing Services for Nov. 1-25 is released, compared with the same period in October, a trader said, adding exports could even fall as shipments are still slow.
Exports of Malaysian palm oil products for Nov. 1-20 were up 4.3 percent on a month earlier to 970,057 tonnes.
Palm oil stocks in Malaysia, the world's no. 2 producer, rose to a near-15-year high in October on a surprise rise in output, weighing down on benchmark prices.
Traded volume stood at 31,453 lots of 25 tonnes each at the end of the trading day.
Palm oil is biased to break a support at 2,291 ringgit per tonne and fall to the next support at 2,262 ringgit, as indicated by its wave pattern and a Fibonacci projection analysis, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
In other vegetable oil markets, the U.S. December soyoil contract fell 1.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange rose 1.6 percent.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC5 2145 -14.00 2139 2158 266
MY PALM OIL JAN6 2223 -9.00 2212 2253 3978
MY PALM OIL FEB6 2284 -6.00 2270 2311 17894
CHINA PALM OLEIN JAN6 4098 +56.00 4072 4164 1441102
CHINA SOYOIL JAN6 5512 +86.00 5474 5554 572014
CBOT SOY OIL DEC5 27.57 -5.70 27.57 28.00 5209
INDIA PALM OIL NOV5 377.60 -5.70 377.60 382.30 503
INDIA SOYOIL DEC5 608.20 -2.05 606.80 613.50 35820
NYMEX CRUDE JAN6 40.66 -1.24 40.50 41.66 48208
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 = 4.3010 ringgit)
($1 = 66.4300 Indian rupees)
($1 = 6.3890 Chinese yuan)
* End-November inventories forecast to stay at current high levels
(Updates prices)
24/11/2015 (Reuters) - Malaysian palm oil futures fell for a third session in a row on Monday, with buying interest dampened by high inventories and expectations of soft export demand.
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to 2,284 ringgit ($531.04) a tonne at the close of trade.
"People still feel that stocks are too high. For this month at end-November they are expecting stocks at similar levels, putting a cap on prices," said a trader based in Kuala Lumpur.
"Unless we start seeing stocks being reduced, prices will be in range."
Palm oil prices have traded in a 126-ringgit range between 2,260 ringgit and 2,386 ringgit since mid-October.
Traders expect only a minimal rise in exports, when data from cargo surveyor Intertek Testing Services for Nov. 1-25 is released, compared with the same period in October, a trader said, adding exports could even fall as shipments are still slow.
Exports of Malaysian palm oil products for Nov. 1-20 were up 4.3 percent on a month earlier to 970,057 tonnes.
Palm oil stocks in Malaysia, the world's no. 2 producer, rose to a near-15-year high in October on a surprise rise in output, weighing down on benchmark prices.
Traded volume stood at 31,453 lots of 25 tonnes each at the end of the trading day.
Palm oil is biased to break a support at 2,291 ringgit per tonne and fall to the next support at 2,262 ringgit, as indicated by its wave pattern and a Fibonacci projection analysis, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
In other vegetable oil markets, the U.S. December soyoil contract fell 1.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange rose 1.6 percent.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC5 2145 -14.00 2139 2158 266
MY PALM OIL JAN6 2223 -9.00 2212 2253 3978
MY PALM OIL FEB6 2284 -6.00 2270 2311 17894
CHINA PALM OLEIN JAN6 4098 +56.00 4072 4164 1441102
CHINA SOYOIL JAN6 5512 +86.00 5474 5554 572014
CBOT SOY OIL DEC5 27.57 -5.70 27.57 28.00 5209
INDIA PALM OIL NOV5 377.60 -5.70 377.60 382.30 503
INDIA SOYOIL DEC5 608.20 -2.05 606.80 613.50 35820
NYMEX CRUDE JAN6 40.66 -1.24 40.50 41.66 48208
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 = 4.3010 ringgit)
($1 = 66.4300 Indian rupees)
($1 = 6.3890 Chinese yuan)