MARKET DEVELOPMENT
VEGOILS-Palm Oil Falls For 2nd Session on Slowing Exports
VEGOILS-Palm Oil Falls For 2nd Session on Slowing Exports
* Palm oil futures fall 0.4 pct, early gains fizzle out
* Top buyers India, China reducing purchases, ample soyoil supply
(Updates with market close)
17/02//2016 (Reuters) - Malaysian palm oil futures lost ground on Tuesday, falling for a second session on slowing demand from top importers and the crude oil market facing headwinds.
Weakening demand and ample supplies of rival soybean oil are likely to cap prices of the tropical product which hit its highest since May 2014 at 2,648 ringgit on Monday.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange finished down 11 ringgit, or 0.4 percent at 2,588 ringgit ($623.6) per tonne.
The market fell 1.8 percent on Monday after estimates from cargo surveyors slowed declining exports.
"Increasing soybean exports from Brazil are giving stiff competition to palm oil prices," said one trader in Kuala Lumpur. "We see pressure on prices in the coming months."
Traded volume stood at 52,367 lots of 25 tonnes each.
Palm oil rose in the first half of the day as gains were driven by a rally in crude oil prices.
But Brent crude oil futures pared gains on Tuesday after Qatar said that four of the world's largest producers agreed to freeze output at January levels, provided that other major exporters followed suit.
Palm oil often tracks movement in energy markets for increasing use of vegetable oils in making renewable fuels.
Palm oil shipments from Malaysia fell in the first half of February, dropping 16.1 percent compared with a month earlier according to Intertek Testing Services cargo surveyor data, while Societe Generale de Surveillance registered a 14.2 percent fall.
Shipments of the tropical oil have been falling in recent weeks as a slowing Chinese economy eases demand for palm. The winter season in the northern hemisphere also reduces demand for palm, as the vegetable oil solidifies in cold climates.
On the technical front, palm oil may retest a resistance at 2,645 ringgit per tonne as suggested by its wave pattern and a Fibonacci projection analysis, said Wang Tao, Reuters market analyst for commodities and energy technicals.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange slid 0.7 percent and Chicago soyoil lost 0.4 percent.
($1 = 4.15 ringgit)
Palm, soy and crude oil prices at 1015 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2528 -18.00 2527 2566 1302
MY PALM OIL APR6 2574 -18.00 2596 2621 12442
MY PALM OIL MAY6 2588 -11.00 2603 2627 23784
CHINA PALM OLEIN MAY6 4988 +0.00 4966 5030 818834
CHINA SOYOIL MAY6 5788 -42.00 5772 5844 377194
CBOT SOY OIL MAR6 31.68 +1.30 31.63 32.20 7686
INDIA PALM OIL FEB6 481.60 +1.30 479.40 485.50 1714
INDIA SOYOIL FEB6 618.00 +0.50 618.00 621.00 1590
NYMEX CRUDE MAR6 29.80 +0.36 28.95 30.94 230461
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
* Top buyers India, China reducing purchases, ample soyoil supply
(Updates with market close)
17/02//2016 (Reuters) - Malaysian palm oil futures lost ground on Tuesday, falling for a second session on slowing demand from top importers and the crude oil market facing headwinds.
Weakening demand and ample supplies of rival soybean oil are likely to cap prices of the tropical product which hit its highest since May 2014 at 2,648 ringgit on Monday.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange finished down 11 ringgit, or 0.4 percent at 2,588 ringgit ($623.6) per tonne.
The market fell 1.8 percent on Monday after estimates from cargo surveyors slowed declining exports.
"Increasing soybean exports from Brazil are giving stiff competition to palm oil prices," said one trader in Kuala Lumpur. "We see pressure on prices in the coming months."
Traded volume stood at 52,367 lots of 25 tonnes each.
Palm oil rose in the first half of the day as gains were driven by a rally in crude oil prices.
But Brent crude oil futures pared gains on Tuesday after Qatar said that four of the world's largest producers agreed to freeze output at January levels, provided that other major exporters followed suit.
Palm oil often tracks movement in energy markets for increasing use of vegetable oils in making renewable fuels.
Palm oil shipments from Malaysia fell in the first half of February, dropping 16.1 percent compared with a month earlier according to Intertek Testing Services cargo surveyor data, while Societe Generale de Surveillance registered a 14.2 percent fall.
Shipments of the tropical oil have been falling in recent weeks as a slowing Chinese economy eases demand for palm. The winter season in the northern hemisphere also reduces demand for palm, as the vegetable oil solidifies in cold climates.
On the technical front, palm oil may retest a resistance at 2,645 ringgit per tonne as suggested by its wave pattern and a Fibonacci projection analysis, said Wang Tao, Reuters market analyst for commodities and energy technicals.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange slid 0.7 percent and Chicago soyoil lost 0.4 percent.
($1 = 4.15 ringgit)
Palm, soy and crude oil prices at 1015 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2528 -18.00 2527 2566 1302
MY PALM OIL APR6 2574 -18.00 2596 2621 12442
MY PALM OIL MAY6 2588 -11.00 2603 2627 23784
CHINA PALM OLEIN MAY6 4988 +0.00 4966 5030 818834
CHINA SOYOIL MAY6 5788 -42.00 5772 5844 377194
CBOT SOY OIL MAR6 31.68 +1.30 31.63 32.20 7686
INDIA PALM OIL FEB6 481.60 +1.30 479.40 485.50 1714
INDIA SOYOIL FEB6 618.00 +0.50 618.00 621.00 1590
NYMEX CRUDE MAR6 29.80 +0.36 28.95 30.94 230461
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