MARKET DEVELOPMENT
VEGOILS-Palm Oil Loses Gains, Market Takes Profit Ahead of Stocks Data
VEGOILS-Palm Oil Loses Gains, Market Takes Profit Ahead of Stocks Data
* Palm oil reverses earlier gains, falls in evening trade
* Market falls on forecasts ahead of official data release -trader
(Updates latest prices, adds quotes)
06/04/2016 (Reuters) - Malaysian palm oil futures reversed earlier gains to fall in evening trade on Tuesday as the market took profits in anticipation of higher than expected end-stocks.
Official palm oil data for March from the Malaysian Palm Oil Board (MPOB) will be announced next Monday. A Reuters poll has forecast stockpiles fell by 10.3 percent to 1.95 million tonnes.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to settle at 2,756 ringgit ($703) per tonne at the end of the trading day.
Traded volumes were 40,606 lots of 25 tonnes each, compared with a 2015 daily average of 44,600 lots.
"There's some profit taking and technical selling pressure.
Also the Reuters poll is not encouraging as some thought stocks would be lower than 1.95 million tonnes," a trader from Kuala Lumpur said.
"All this could have triggered selling ahead of the MPOB data next Monday."
The poll also forecasts Malaysian output at 1.13 million tonnes, 8 percent higher from February but its lowest levels for the month since 2007, as the crop-damaging El Nino weather pattern affects fruit yields and lowers production.
There is normally a seasonal pickup in March palm output, with production rising 34 percent month-on-month in 2015 and 17 percent in 2014. (MYPOMP-CPOTT)
In competing vegetable oil markets, the May Chicago Board of Trade soyoil contract fell 0.6 percent, while the
September soybean oil contract on the Dalian Commodity Exchange rose 1 percent.
The offer price for crude palm kernel oil fell to 5357.21 ringgit per tonne (PKO-MYSTH-M1) on Tuesday evening due to slowing sales, according to price assessments by Thomson Reuters.
Palm kernel oil offer prices climbed to a near five-year high last week on supply concerns before coming down slightly as the market was overdone, traders said.
"It's gone up too high, consumers aren't really buying and sales have been quite slow," a trader told Reuters. "The earlier rise was due to supply issues but demand didn't follow through, so now we're just seeing hand-to-mouth buying to cover basic needs."
Palm, soy and crude oil prices at 1108 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2730 -22.00 2730 2742 60
MY PALM OIL MAY6 2744 -14.00 2742 2776 1589
MY PALM OIL JUN6 2757 -14.00 2755 2789 20566
CHINA PALM OLEIN SEP6 5602 +60.00 5556 5616 704306
CHINA SOYOIL SEP6 6168 +60.00 6116 6182 529776
CBOT SOY OIL MAY6 34.49 -2.00 34.45 34.7 5334
INDIA PALM OIL APR6 558.50 -2.00 554.40 565.9 3729
INDIA SOYOIL APR6 651.7 -2.40 649.6 656.9 13720
NYMEX CRUDE MAY6 35.60 -0.10 35.24 35.71 73597
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 = 3.9220 ringgit)
($1 = 66.4825 Indian rupees)
($1 = 6.4737 Chinese yuan)
* Market falls on forecasts ahead of official data release -trader
(Updates latest prices, adds quotes)
06/04/2016 (Reuters) - Malaysian palm oil futures reversed earlier gains to fall in evening trade on Tuesday as the market took profits in anticipation of higher than expected end-stocks.
Official palm oil data for March from the Malaysian Palm Oil Board (MPOB) will be announced next Monday. A Reuters poll has forecast stockpiles fell by 10.3 percent to 1.95 million tonnes.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to settle at 2,756 ringgit ($703) per tonne at the end of the trading day.
Traded volumes were 40,606 lots of 25 tonnes each, compared with a 2015 daily average of 44,600 lots.
"There's some profit taking and technical selling pressure.
Also the Reuters poll is not encouraging as some thought stocks would be lower than 1.95 million tonnes," a trader from Kuala Lumpur said.
"All this could have triggered selling ahead of the MPOB data next Monday."
The poll also forecasts Malaysian output at 1.13 million tonnes, 8 percent higher from February but its lowest levels for the month since 2007, as the crop-damaging El Nino weather pattern affects fruit yields and lowers production.
There is normally a seasonal pickup in March palm output, with production rising 34 percent month-on-month in 2015 and 17 percent in 2014. (MYPOMP-CPOTT)
In competing vegetable oil markets, the May Chicago Board of Trade soyoil contract fell 0.6 percent, while the
September soybean oil contract on the Dalian Commodity Exchange rose 1 percent.
The offer price for crude palm kernel oil fell to 5357.21 ringgit per tonne (PKO-MYSTH-M1) on Tuesday evening due to slowing sales, according to price assessments by Thomson Reuters.
Palm kernel oil offer prices climbed to a near five-year high last week on supply concerns before coming down slightly as the market was overdone, traders said.
"It's gone up too high, consumers aren't really buying and sales have been quite slow," a trader told Reuters. "The earlier rise was due to supply issues but demand didn't follow through, so now we're just seeing hand-to-mouth buying to cover basic needs."
Palm, soy and crude oil prices at 1108 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2730 -22.00 2730 2742 60
MY PALM OIL MAY6 2744 -14.00 2742 2776 1589
MY PALM OIL JUN6 2757 -14.00 2755 2789 20566
CHINA PALM OLEIN SEP6 5602 +60.00 5556 5616 704306
CHINA SOYOIL SEP6 6168 +60.00 6116 6182 529776
CBOT SOY OIL MAY6 34.49 -2.00 34.45 34.7 5334
INDIA PALM OIL APR6 558.50 -2.00 554.40 565.9 3729
INDIA SOYOIL APR6 651.7 -2.40 649.6 656.9 13720
NYMEX CRUDE MAY6 35.60 -0.10 35.24 35.71 73597
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 = 3.9220 ringgit)
($1 = 66.4825 Indian rupees)
($1 = 6.4737 Chinese yuan)