MARKET DEVELOPMENT
VEGOILS-Palm Oil Sees Light Recovery on Low Output Forecast After Profit Taking
VEGOILS-Palm Oil Sees Light Recovery on Low Output Forecast After Profit Taking
* Market recovers slightly on lower output forecasts
* Gains could be capped by slow exports
(Updates latest prices, quotes)
17/03/2016 (Reuters) - Malaysian palm oil futures recovered losses from early trade and nudged higher on Wednesday due to expectations of lower output growth from a crop damaging El Nino.
Industry experts at a conference in Kuala Lumpur last week had forecast El Nino's dry weather effects to lower global palm production by 2-3 million tonnes, potentially pushing benchmark prices up to range between 2,700-3,000 ringgit a tonne by June.
Palm had earlier suffered its steepest drop in two weeks, tracking declines in rival vegetable oils and feeling the pressure of slowing demand, while traders booked profits.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.04 percent to reach 2,611 ringgit ($631) per tonne at the end of the trading day. It reached a one-month high of 2,632 ringgit earlier this week on Monday.
Trade volumes were 47,226 lots of 25 tonnes each on Wednesday at the close of trade.
"The market is continuing the upward movement after profit taking activities. Until further leads emerge, the market is still playing on the conference's suggested price range and production (forecast)," a Kuala Lumpur-based trader said.
Among other vegetable oils, May soybean oil on the Dalian Commodity Exchange was off 0.2 percent, while the Chicago soyoil contract shed 0.4 percent.
Palm oil gains could be capped by weak export demand, as consumption from top buyers China and India wane due to slowing economic growth.
Exports of Malaysian palm oil products for Mar. 1-15 fell 1.1 percent compared with Feb. 1-15, recent data from cargo surveyor Societe Generale de Surveillance showed.
Data from Intertek Testing Services recorded a 10.5 percent jump in shipments for the same time period, but traders say this was off low volumes in February when activity slowed due to the Chinese lunar new year.
Trading activity however is expected to pick up this month before a 5 percent export tax on crude palm oil kicks in during April.
Palm, soy and crude oil prices at 1048 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2590 -3.00 2566 2591 456
MY PALM OIL MAY6 2609 -2.00 2584 2612 11738
MY PALM OIL JUN6 2611 +1.00 2586 2614 18986
CHINA PALM OLEIN SEP6 5172 -30.00 5162 5248 1030674
CHINA SOYOIL SEP6 5866 -18.00 5858 5918 597590
CBOT SOY OIL MAY6 32.41 -2.30 32.3 32.63 5717
INDIA PALM OIL MAR6 508.60 -2.30 506.20 509 548
INDIA SOYOIL MAR6 614 -2.90 613.5 614.5 820
NYMEX CRUDE APR6 37.04 +0.70 36.61 37.19 42836
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 = 4.1350 ringgit)
($1 = 67.2450 Indian rupees)
($1 = 6.5195 Chinese yuan)
* Gains could be capped by slow exports
(Updates latest prices, quotes)
17/03/2016 (Reuters) - Malaysian palm oil futures recovered losses from early trade and nudged higher on Wednesday due to expectations of lower output growth from a crop damaging El Nino.
Industry experts at a conference in Kuala Lumpur last week had forecast El Nino's dry weather effects to lower global palm production by 2-3 million tonnes, potentially pushing benchmark prices up to range between 2,700-3,000 ringgit a tonne by June.
Palm had earlier suffered its steepest drop in two weeks, tracking declines in rival vegetable oils and feeling the pressure of slowing demand, while traders booked profits.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.04 percent to reach 2,611 ringgit ($631) per tonne at the end of the trading day. It reached a one-month high of 2,632 ringgit earlier this week on Monday.
Trade volumes were 47,226 lots of 25 tonnes each on Wednesday at the close of trade.
"The market is continuing the upward movement after profit taking activities. Until further leads emerge, the market is still playing on the conference's suggested price range and production (forecast)," a Kuala Lumpur-based trader said.
Among other vegetable oils, May soybean oil on the Dalian Commodity Exchange was off 0.2 percent, while the Chicago soyoil contract shed 0.4 percent.
Palm oil gains could be capped by weak export demand, as consumption from top buyers China and India wane due to slowing economic growth.
Exports of Malaysian palm oil products for Mar. 1-15 fell 1.1 percent compared with Feb. 1-15, recent data from cargo surveyor Societe Generale de Surveillance showed.
Data from Intertek Testing Services recorded a 10.5 percent jump in shipments for the same time period, but traders say this was off low volumes in February when activity slowed due to the Chinese lunar new year.
Trading activity however is expected to pick up this month before a 5 percent export tax on crude palm oil kicks in during April.
Palm, soy and crude oil prices at 1048 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2590 -3.00 2566 2591 456
MY PALM OIL MAY6 2609 -2.00 2584 2612 11738
MY PALM OIL JUN6 2611 +1.00 2586 2614 18986
CHINA PALM OLEIN SEP6 5172 -30.00 5162 5248 1030674
CHINA SOYOIL SEP6 5866 -18.00 5858 5918 597590
CBOT SOY OIL MAY6 32.41 -2.30 32.3 32.63 5717
INDIA PALM OIL MAR6 508.60 -2.30 506.20 509 548
INDIA SOYOIL MAR6 614 -2.90 613.5 614.5 820
NYMEX CRUDE APR6 37.04 +0.70 36.61 37.19 42836
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 = 4.1350 ringgit)
($1 = 67.2450 Indian rupees)
($1 = 6.5195 Chinese yuan)