MARKET DEVELOPMENT
VEGOILS-Palm Oil Hits Highest Level in More Than Week
VEGOILS-Palm Oil Hits Highest Level in More Than Week
* Weaker ringgit, lower production also help palm oil
* Palm to test resistance at 2,934 rgt/T - technicals
(Updates latest prices)
22/11/2016 (Reuters) - Malaysian palm oil futures rose about 2 percent on Monday, reaching their highest intraday levels in more than a week, supported by gains in rival oils and a weaker ringgit.
The Malaysian currency was at its weakest in more than 13 months after the central bank said it would take action against individuals or banks who traded ringgit in the offshore non-deliverable forward (NDF) market.
Spot ringgit fell 0.4 percent to 4.4300 per dollar, an intraday low, and its weakest since Oct. 2, 2015.
Weakness in the ringgit, the currency that palm oil is traded in, lends support to palm prices as it makes the tropical oil cheaper for holders of foreign currencies.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 1.7 percent at 2,919 ringgit ($661) a tonne at the end of the trading day.
They earlier hit a peak of 2,931 ringgit, their highest since Nov. 11.
Traded volumes stood at 43,561 lots of 25 tonnes each, just below the 2015 daily average of 44,600 lots.
Palm was also supported by stronger performing rival oils, said one futures trader from Kuala Lumpur, referring to related edibles oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
"Overall, overseas commodity markets are up. The ringgit should stay weak and continue to hold the market," the trader said.
"Lower production will also lend support while only poor exports will limit palm's upside."
Palm oil output this year has been hit by the dry weather effects of last year's El Nino. Malaysian production in October fell by 2.2 percent from the previous month to its lowest level for the month since 2010. (MYPOMP-CPOTT)
Malaysian exports of palm oil shipments for Nov. 1-20 dropped 8-9 percent from a month earlier, cargo surveyor data showed.
The December soybean oil contract on the CBOT rose 1 percent, while the January soybean oil contract on the Dalian Commodity Exchange gained 1.5 percent.
In related vegetable oils, the January contract for palm olein on the Dalian Commodity Exchange was up 2.4 percent.
Palm oil is expected to test a resistance at 2,934 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,963 ringgit, Wang Tao, a Reuters market analyst for commodities and energy technicals, said.
Palm, soy and crude oil prices at 1100 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 2923 +51.00 2913 2936 717
MY PALM OIL JAN7 2925 +55.00 2898 2937 4706
MY PALM OIL FEB7 2920 +50.00 2897 2931 23477
CHINA PALM OLEIN JAN7 6260 +146.00 6102 6292 800098
CHINA SOYOIL JAN7 6726 +96.00 6630 6742 461014
CBOT SOY OIL DEC6 34.41 +0.36 34.1 34.47 10792
INDIA PALM OIL NOV6 534.30 +7.00 530.00 536.3 517
INDIA SOYOIL DEC6 688.5 +4.35 687.5 690 9800
NYMEX CRUDE DEC6 46.48 +0.79 45.77 46.51 3490
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 = 4.4170 ringgit)
($1 = 68.1079 Indian rupees)
($1 = 6.8947 Chinese yuan)
* Palm to test resistance at 2,934 rgt/T - technicals
(Updates latest prices)
22/11/2016 (Reuters) - Malaysian palm oil futures rose about 2 percent on Monday, reaching their highest intraday levels in more than a week, supported by gains in rival oils and a weaker ringgit.
The Malaysian currency was at its weakest in more than 13 months after the central bank said it would take action against individuals or banks who traded ringgit in the offshore non-deliverable forward (NDF) market.
Spot ringgit fell 0.4 percent to 4.4300 per dollar, an intraday low, and its weakest since Oct. 2, 2015.
Weakness in the ringgit, the currency that palm oil is traded in, lends support to palm prices as it makes the tropical oil cheaper for holders of foreign currencies.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 1.7 percent at 2,919 ringgit ($661) a tonne at the end of the trading day.
They earlier hit a peak of 2,931 ringgit, their highest since Nov. 11.
Traded volumes stood at 43,561 lots of 25 tonnes each, just below the 2015 daily average of 44,600 lots.
Palm was also supported by stronger performing rival oils, said one futures trader from Kuala Lumpur, referring to related edibles oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
"Overall, overseas commodity markets are up. The ringgit should stay weak and continue to hold the market," the trader said.
"Lower production will also lend support while only poor exports will limit palm's upside."
Palm oil output this year has been hit by the dry weather effects of last year's El Nino. Malaysian production in October fell by 2.2 percent from the previous month to its lowest level for the month since 2010. (MYPOMP-CPOTT)
Malaysian exports of palm oil shipments for Nov. 1-20 dropped 8-9 percent from a month earlier, cargo surveyor data showed.
The December soybean oil contract on the CBOT rose 1 percent, while the January soybean oil contract on the Dalian Commodity Exchange gained 1.5 percent.
In related vegetable oils, the January contract for palm olein on the Dalian Commodity Exchange was up 2.4 percent.
Palm oil is expected to test a resistance at 2,934 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,963 ringgit, Wang Tao, a Reuters market analyst for commodities and energy technicals, said.
Palm, soy and crude oil prices at 1100 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 2923 +51.00 2913 2936 717
MY PALM OIL JAN7 2925 +55.00 2898 2937 4706
MY PALM OIL FEB7 2920 +50.00 2897 2931 23477
CHINA PALM OLEIN JAN7 6260 +146.00 6102 6292 800098
CHINA SOYOIL JAN7 6726 +96.00 6630 6742 461014
CBOT SOY OIL DEC6 34.41 +0.36 34.1 34.47 10792
INDIA PALM OIL NOV6 534.30 +7.00 530.00 536.3 517
INDIA SOYOIL DEC6 688.5 +4.35 687.5 690 9800
NYMEX CRUDE DEC6 46.48 +0.79 45.77 46.51 3490
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 = 4.4170 ringgit)
($1 = 68.1079 Indian rupees)
($1 = 6.8947 Chinese yuan)