MARKET DEVELOPMENT
VEGOILS-Palm Oil Falls for Fifth Day on Improved Output, Weak Exports
VEGOILS-Palm Oil Falls for Fifth Day on Improved Output, Weak Exports
* Palm falls for fifth day, hits three-week low
* Cargo surveyor data for Feb. 1-25 due Thursday
(Updates latest prices)
25/02/2016 (Reuters) - Malaysian palm oil futures fell for a fifth consecutive session on Wednesday, dragged down by surprise signs of improved output and weak export demand.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 1.2 percent to 2,520 ringgit ($597.86) per tonne at the end of the trading day. It earlier hit an intraday low of 2,517 ringgit, the lowest in three weeks.
Traded volume stood at 49,485 lots of 25 tonnes each.
"The downside was triggered by production improvement and poor exports, coupled with weaker overseas market," said a trader based in Kuala Lumpur.
"The ringgit weakness had added support, but the anticipation of lower exports capped the upside."
Data from the Southern Palm Oil Millers' Association on Tuesday showed an unexpected 2.6 percent rise in output between Feb.1 and Feb. 20 compared with the same period in January.
Although production growth of the tropical oil is seen declining this year due to an El Nino event, which brings crop damaging dry weather across Southeast Asia, recent rainfalls could lessen its impact.
Export demand for the tropical oil has been slowing in February due to lower consumption from top consumers China and India, with cargo surveyor data showing falling palm oil shipments by 10-12 percent for the first 20 days of the month compared with the same time period in January.
Palm oil shipment data for Feb. 1-25 is due to be released on Thursday, in which traders expect to see further declines in demand.
Palm oil is still targeting 2,506 ringgit per tonne, as suggested by a rising channel and a Fibonacci projection analysis, according to Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange fell 1.2 percent, while the Chicago soyoil contract fell 0.2 percent.
Palm, soy and crude oil prices at 1014 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2461 -22.00 2455 2485 1271
MY PALM OIL APR6 2503 -28.00 2498 2525 4943
MY PALM OIL MAY6 2520 -31.00 2517 2547 26517
CHINA PALM OLEIN MAY6 4902 -110.00 4884 5022 1130490
CHINA SOYOIL MAY6 5670 -70.00 5658 5766 517310
CBOT SOY OIL MAR6 30.70 -4.10 30.65 30.86 2795
INDIA PALM OIL FEB6 477.50 -4.10 477.20 481.00 1164
INDIA SOYOIL MAR6 616.50 -3.80 615.30 618.80 32520
NYMEX CRUDE APR6 30.89 -0.98 30.82 31.53 70298
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 = 4.2150 ringgit)
($1 = 68.5375 Indian rupees)
($1 = 6.5350 Chinese yuan)
* Cargo surveyor data for Feb. 1-25 due Thursday
(Updates latest prices)
25/02/2016 (Reuters) - Malaysian palm oil futures fell for a fifth consecutive session on Wednesday, dragged down by surprise signs of improved output and weak export demand.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 1.2 percent to 2,520 ringgit ($597.86) per tonne at the end of the trading day. It earlier hit an intraday low of 2,517 ringgit, the lowest in three weeks.
Traded volume stood at 49,485 lots of 25 tonnes each.
"The downside was triggered by production improvement and poor exports, coupled with weaker overseas market," said a trader based in Kuala Lumpur.
"The ringgit weakness had added support, but the anticipation of lower exports capped the upside."
Data from the Southern Palm Oil Millers' Association on Tuesday showed an unexpected 2.6 percent rise in output between Feb.1 and Feb. 20 compared with the same period in January.
Although production growth of the tropical oil is seen declining this year due to an El Nino event, which brings crop damaging dry weather across Southeast Asia, recent rainfalls could lessen its impact.
Export demand for the tropical oil has been slowing in February due to lower consumption from top consumers China and India, with cargo surveyor data showing falling palm oil shipments by 10-12 percent for the first 20 days of the month compared with the same time period in January.
Palm oil shipment data for Feb. 1-25 is due to be released on Thursday, in which traders expect to see further declines in demand.
Palm oil is still targeting 2,506 ringgit per tonne, as suggested by a rising channel and a Fibonacci projection analysis, according to Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange fell 1.2 percent, while the Chicago soyoil contract fell 0.2 percent.
Palm, soy and crude oil prices at 1014 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2461 -22.00 2455 2485 1271
MY PALM OIL APR6 2503 -28.00 2498 2525 4943
MY PALM OIL MAY6 2520 -31.00 2517 2547 26517
CHINA PALM OLEIN MAY6 4902 -110.00 4884 5022 1130490
CHINA SOYOIL MAY6 5670 -70.00 5658 5766 517310
CBOT SOY OIL MAR6 30.70 -4.10 30.65 30.86 2795
INDIA PALM OIL FEB6 477.50 -4.10 477.20 481.00 1164
INDIA SOYOIL MAR6 616.50 -3.80 615.30 618.80 32520
NYMEX CRUDE APR6 30.89 -0.98 30.82 31.53 70298
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 = 4.2150 ringgit)
($1 = 68.5375 Indian rupees)
($1 = 6.5350 Chinese yuan)