MARKET DEVELOPMENT
VEGOILS-Palm Rises on Concerns About Lower Output
VEGOILS-Palm Rises on Concerns About Lower Output
* Palm sees first gain after two losing sessions
* Up on concerns of lower production, weaker ringgit
* Government data scheduled for release on Nov. 10
(Updates latest prices, quote)
03/11/2016 (Reuters) - Malaysian palm oil futures on Wednesday saw their first session of gains this week, lifted by concerns about lower production and a weakening ringgit, palm's traded currency.
A weaker ringgit usually makes the tropical oil cheaper for holders of foreign currencies. It weakened 0.2 percent against the dollar to 4.1860 in the evening.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange were up 1 percent at 2,758 ringgit ($659) a tonne at the close of trade.
The contract earlier fell to an intraday low of 2,712 ringgit, its lowest level in a week and a half, before recovering to an intraday high of 2,764 ringgit.
Traded volumes stood at 42,884 lots of 25 tonnes each at the end of the trading day, slightly below the 2015 daily average of 44,600 lots.
"The weather is a factor for the production decline. This could lower production in the coming months," said a trader from Kuala Lumpur, referring to the year-end monsoon rains that disrupt palm's fruit harvest.
Traders also say the market was supported by a report from a local research house forecasting flat output in October from September.
September output in Malaysia, the world's No.2 palm producer, rose just 0.8 percent to 1.72 million tonnes from the previous month. (MYPOMP-CPOTT)
October data from government body the Malaysian Palm Oil Board will be released on Nov. 10.
In related vegetable oils, the December soybean oil contract on the Chicago Board of Trade was down 0.2 percent, while the January soybean oil contract on China's Dalian Commodity Exchange fell 1.3 percent.
The January contract for palm olein on China's Dalian Commodity Exchange declined 2 percent.
Palm, soy and crude oil prices at 1118 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2780 +40.00 2760 2782 124
MY PALM OIL DEC6 2767 +30.00 2716 2770 4020
MY PALM OIL JAN7 2762 +26.00 2712 2764 24909
CHINA PALM OLEIN JAN7 5836 -118.00 5792 5916 992836
CHINA SOYOIL JAN7 6616 -88.00 6578 6694 689622
CBOT SOY OIL DEC6 34.77 -0.08 34.56 34.91 13627
INDIA PALM OIL NOV6 516.50 +2.90 509.20 517.5 2065
INDIA SOYOIL NOV6 666.5 +1.10 663.5 666.8 22280
NYMEX CRUDE DEC6 45.95 -0.72 45.82 46.47 85935
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 = 4.1860 ringgit)
($1 = 66.7300 Indian rupees)
($1 = 6.7600 Chinese yuan)
* Up on concerns of lower production, weaker ringgit
* Government data scheduled for release on Nov. 10
(Updates latest prices, quote)
03/11/2016 (Reuters) - Malaysian palm oil futures on Wednesday saw their first session of gains this week, lifted by concerns about lower production and a weakening ringgit, palm's traded currency.
A weaker ringgit usually makes the tropical oil cheaper for holders of foreign currencies. It weakened 0.2 percent against the dollar to 4.1860 in the evening.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange were up 1 percent at 2,758 ringgit ($659) a tonne at the close of trade.
The contract earlier fell to an intraday low of 2,712 ringgit, its lowest level in a week and a half, before recovering to an intraday high of 2,764 ringgit.
Traded volumes stood at 42,884 lots of 25 tonnes each at the end of the trading day, slightly below the 2015 daily average of 44,600 lots.
"The weather is a factor for the production decline. This could lower production in the coming months," said a trader from Kuala Lumpur, referring to the year-end monsoon rains that disrupt palm's fruit harvest.
Traders also say the market was supported by a report from a local research house forecasting flat output in October from September.
September output in Malaysia, the world's No.2 palm producer, rose just 0.8 percent to 1.72 million tonnes from the previous month. (MYPOMP-CPOTT)
October data from government body the Malaysian Palm Oil Board will be released on Nov. 10.
In related vegetable oils, the December soybean oil contract on the Chicago Board of Trade was down 0.2 percent, while the January soybean oil contract on China's Dalian Commodity Exchange fell 1.3 percent.
The January contract for palm olein on China's Dalian Commodity Exchange declined 2 percent.
Palm, soy and crude oil prices at 1118 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2780 +40.00 2760 2782 124
MY PALM OIL DEC6 2767 +30.00 2716 2770 4020
MY PALM OIL JAN7 2762 +26.00 2712 2764 24909
CHINA PALM OLEIN JAN7 5836 -118.00 5792 5916 992836
CHINA SOYOIL JAN7 6616 -88.00 6578 6694 689622
CBOT SOY OIL DEC6 34.77 -0.08 34.56 34.91 13627
INDIA PALM OIL NOV6 516.50 +2.90 509.20 517.5 2065
INDIA SOYOIL NOV6 666.5 +1.10 663.5 666.8 22280
NYMEX CRUDE DEC6 45.95 -0.72 45.82 46.47 85935
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 = 4.1860 ringgit)
($1 = 66.7300 Indian rupees)
($1 = 6.7600 Chinese yuan)