MARKET DEVELOPMENT
VEGOILS-Palm Oil Breaks 5-day Losing Streak on Expectations of Lower Stocks
VEGOILS-Palm Oil Breaks 5-day Losing Streak on Expectations of Lower Stocks
* Palm gains after falling for five consecutive days
* Market expects falling prices on slowing demand - trader
(Updates latest prices)
26/02/2016 (Reuters) - Malaysian palm oil futures reversed track to gain for the first time in almost a week on market short covering and expectations of lower inventories at the end of February.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,537 ringgit ($601.76) per tonne at the end of the trading day.
Traded volume stood at 47,812 lots of 25 tonnes each.
"We do expect further drawdowns in February stocks, although exports remain lower," said Kuala Lumpur-based trader.
"I think the market does expect lower prices in view of weaker overseas demand."
Palm futures fell in the last five sessions due to concerns over an unexpected rise in production in the first 20 days of February. However, Malaysian stockpiles have been falling since charting a record high of 2.9 million tonnes in November. (MYPOMS-TPO)
Shipments for the vegetable oil fell 14.8 percent during Feb. 1-25 compared with the corresponding period a month ago, data from cargo surveyor Intertek Testing Services showed on Thursday. Demand for palm oil has been falling on lower consumption from top consumers - China and India.
Palm oil is expected to break a resistance at 2,549 ringgit per tonne and rise towards the next resistance at 2,576 ringgit, as suggested by its wave pattern 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 lost 0.7 percent, while the Chicago soyoil contract rose 0.4 percent.
Palm, soy and crude oil prices at 1027 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2473 +12.00 2467 2488 491
MY PALM OIL APR6 2515 +13.00 2511 2534 3256
MY PALM OIL MAY6 2537 +18.00 2526 2553 22532
CHINA PALM OLEIN MAY6 4926 -14.00 4878 4960 913056
CHINA SOYOIL MAY6 5658 -38.00 5648 5698 357440
CBOT SOY OIL MAY6 31.29 +2.90 31.12 31.41 6223
INDIA PALM OIL FEB6 479.70 +2.90 477.90 481.20 378
INDIA SOYOIL MAR6 617.90 +2.85 615.80 619.50 20450
NYMEX CRUDE APR6 31.82 -0.33 31.44 32.28 79657
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 = 4.2160 ringgit)
($1 = 68.7050 Indian rupees)
($1 = 6.5325 Chinese yuan)
* Market expects falling prices on slowing demand - trader
(Updates latest prices)
26/02/2016 (Reuters) - Malaysian palm oil futures reversed track to gain for the first time in almost a week on market short covering and expectations of lower inventories at the end of February.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,537 ringgit ($601.76) per tonne at the end of the trading day.
Traded volume stood at 47,812 lots of 25 tonnes each.
"We do expect further drawdowns in February stocks, although exports remain lower," said Kuala Lumpur-based trader.
"I think the market does expect lower prices in view of weaker overseas demand."
Palm futures fell in the last five sessions due to concerns over an unexpected rise in production in the first 20 days of February. However, Malaysian stockpiles have been falling since charting a record high of 2.9 million tonnes in November. (MYPOMS-TPO)
Shipments for the vegetable oil fell 14.8 percent during Feb. 1-25 compared with the corresponding period a month ago, data from cargo surveyor Intertek Testing Services showed on Thursday. Demand for palm oil has been falling on lower consumption from top consumers - China and India.
Palm oil is expected to break a resistance at 2,549 ringgit per tonne and rise towards the next resistance at 2,576 ringgit, as suggested by its wave pattern 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 lost 0.7 percent, while the Chicago soyoil contract rose 0.4 percent.
Palm, soy and crude oil prices at 1027 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2473 +12.00 2467 2488 491
MY PALM OIL APR6 2515 +13.00 2511 2534 3256
MY PALM OIL MAY6 2537 +18.00 2526 2553 22532
CHINA PALM OLEIN MAY6 4926 -14.00 4878 4960 913056
CHINA SOYOIL MAY6 5658 -38.00 5648 5698 357440
CBOT SOY OIL MAY6 31.29 +2.90 31.12 31.41 6223
INDIA PALM OIL FEB6 479.70 +2.90 477.90 481.20 378
INDIA SOYOIL MAR6 617.90 +2.85 615.80 619.50 20450
NYMEX CRUDE APR6 31.82 -0.33 31.44 32.28 79657
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 = 4.2160 ringgit)
($1 = 68.7050 Indian rupees)
($1 = 6.5325 Chinese yuan)