MARKET DEVELOPMENT
VEGOILS-Palm Slips on Profit-Taking, Stronger Ringgit
VEGOILS-Palm Slips on Profit-Taking, Stronger Ringgit
04/11/2016 (Reuters) - Malaysian palm oil futures fell in the first session of trade on Thursday on profit-taking and as the ringgit inched up, but prices could find support in the second half from a plan to roll out a higher biodiesel mandate.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,747 ringgit ($657.02) a tonne at the midday break. Palm gained nearly 1 percent on Wednesday.
Palm prices are down "because of weaker U.S. markets and the ringgit," a Kuala Lumpur-based trader said, referring to the December soybean oil contract on the Chicago Board of Trade that fell 0.3 percent on Thursday.
The Malaysian ringgit rose 0.1 percent, after sliding 0.5 percent in the previous session. A stronger ringgit makes palm oil more expensive for holders of other currencies.
Palm oil prices were also hurt by profit-taking ahead of an industry conference in China next week, the trader added.
The January soybean oil contract on China's Dalian Commodity Exchange was down 0.3 percent.
Prices could, however, rise once the market re-opens as Malaysia looks set to implement higher biodiesel mandates for the transportation and industrial sector from Dec. 1.
The so-called B10 programme, which requires a minimum bio-content of 10 percent in biodiesel for the transport sector, would be rolled out in phases beginning with Johor state, according to an email sent by the Malaysian Palm Oil Board to industry participants and seen by Reuters.
The B7 programme for the industrial sector would start nationwide on the same day.
A higher biodiesel mandate would increase demand for palm oil, which is used as a component of biodiesel.
The full implementation of the B10 programme would consume 750,000 tonnes of oil palm a year, Malaysia's minister of plantation industries and commodities said earlier this year.
Palm, soy and crude oil prices at 0550 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 0 +0.00 0 0 0
MY PALM OIL DEC6 2752 -14.00 2747 2775 1469
MY PALM OIL JAN7 2747 -11.00 2739 2770 13548
CHINA PALM OLEIN JAN7 5866 +12.00 5844 5908 655554
CHINA SOYOIL JAN7 6618 -14.00 6588 6652 351528
CBOT SOY OIL DEC6 34.9 -0.90 34.88 35.04 3054
INDIA PALM OIL NOV6 515.50 -0.90 514.40 516.2 186
INDIA SOYOIL NOV6 668.45 +0.30 666.6 669.3 2470
NYMEX CRUDE DEC6 45.78 +0.44 45.45 45.90 27156
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 = 4.1810 ringgit)
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,747 ringgit ($657.02) a tonne at the midday break. Palm gained nearly 1 percent on Wednesday.
Palm prices are down "because of weaker U.S. markets and the ringgit," a Kuala Lumpur-based trader said, referring to the December soybean oil contract on the Chicago Board of Trade that fell 0.3 percent on Thursday.
The Malaysian ringgit rose 0.1 percent, after sliding 0.5 percent in the previous session. A stronger ringgit makes palm oil more expensive for holders of other currencies.
Palm oil prices were also hurt by profit-taking ahead of an industry conference in China next week, the trader added.
The January soybean oil contract on China's Dalian Commodity Exchange was down 0.3 percent.
Prices could, however, rise once the market re-opens as Malaysia looks set to implement higher biodiesel mandates for the transportation and industrial sector from Dec. 1.
The so-called B10 programme, which requires a minimum bio-content of 10 percent in biodiesel for the transport sector, would be rolled out in phases beginning with Johor state, according to an email sent by the Malaysian Palm Oil Board to industry participants and seen by Reuters.
The B7 programme for the industrial sector would start nationwide on the same day.
A higher biodiesel mandate would increase demand for palm oil, which is used as a component of biodiesel.
The full implementation of the B10 programme would consume 750,000 tonnes of oil palm a year, Malaysia's minister of plantation industries and commodities said earlier this year.
Palm, soy and crude oil prices at 0550 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 0 +0.00 0 0 0
MY PALM OIL DEC6 2752 -14.00 2747 2775 1469
MY PALM OIL JAN7 2747 -11.00 2739 2770 13548
CHINA PALM OLEIN JAN7 5866 +12.00 5844 5908 655554
CHINA SOYOIL JAN7 6618 -14.00 6588 6652 351528
CBOT SOY OIL DEC6 34.9 -0.90 34.88 35.04 3054
INDIA PALM OIL NOV6 515.50 -0.90 514.40 516.2 186
INDIA SOYOIL NOV6 668.45 +0.30 666.6 669.3 2470
NYMEX CRUDE DEC6 45.78 +0.44 45.45 45.90 27156
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 = 4.1810 ringgit)