MARKET DEVELOPMENT
VEGOILS-Palm Reverses Course to Rise, Tracking Crude Oil Rally
VEGOILS-Palm Reverses Course to Rise, Tracking Crude Oil Rally
* Palm charts seventh win in eight sessions
* Market strength on rising crude oil could be short term, but long-term supply control could support palm - trader
01/12/2016 (Reuters) - Malaysian palm futures reversed course to gain in late trade on Wednesday as they tracked a rally in crude oil prices, following stronger prospects that oil supplies could be cut.
Saudi Arabia's energy minister said at a meeting of the Organization of the Petroleum Exporting Countries an agreement among members to cut output was close.
"Crude oil rallied as OPEC nears a deal to cut supplies," said a palm oil trader from Kuala Lumpur, explaining palm's price gains in the evening.
"If crude oil supplies are controlled it should support the (palm oil) market. Higher crude oil prices will be more feasible for the biodiesel mandate."
Palm prices are impacted by crude oil's performance, as the tropical oil is used as component for biodiesel.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange rose 0.8 percent to 3,073 ringgit ($688) a tonne at the end of the trading day.
Traded volumes stood at 47,834 lots of 25 tonnes each, slightly above the 2015 average of 44,600 lots traded in a day.
Palm oil had previously charted six consecutive days of gains, hitting a four-year high last Thursday, before declining for one session on Tuesday.
Palm oil shipments from Malaysia, the world's No.2 producer of the tropical oil, fell 10-12 percent for the full month of November from the previous month, according to data from cargo surveyors on Wednesday.
In related vegetable oils, the January soybean oil contract on the CBOT rose 1.4 percent, while May soybeans on the Dalian Commodity Exchange dropped 0.1 percent.
The May contract of palm olein on the Dalian Commodity Exchange was down 1.2 percent.
Palm, soy and crude oil prices at 1057 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 3079 +22.00 3035 3092 310
MY PALM OIL JAN7 3076 +17.00 3026 3086 1341
MY PALM OIL FEB7 3073 +23.00 3017 3083 25316
CHINA PALM OLEIN MAY7 6212 -72.00 6114 6266 1051606
CHINA SOYOIL MAY7 7154 -10.00 7036 7214 1091496
CBOT SOY OIL JAN7 37.15 +0.55 36.52 37.26 21528
INDIA PALM OIL NOV6 554.40 +0.90 553.20 554.7 301
INDIA SOYOIL DEC6 722.3 +7.40 712.55 723.7 22560
NYMEX CRUDE JAN7 47.97 +2.74 45.22 48.22 274040
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 = 4.4640 ringgit)
($1 = 68.4550 Indian rupees)
($1 = 6.8807 Chinese yuan)
* Market strength on rising crude oil could be short term, but long-term supply control could support palm - trader
01/12/2016 (Reuters) - Malaysian palm futures reversed course to gain in late trade on Wednesday as they tracked a rally in crude oil prices, following stronger prospects that oil supplies could be cut.
Saudi Arabia's energy minister said at a meeting of the Organization of the Petroleum Exporting Countries an agreement among members to cut output was close.
"Crude oil rallied as OPEC nears a deal to cut supplies," said a palm oil trader from Kuala Lumpur, explaining palm's price gains in the evening.
"If crude oil supplies are controlled it should support the (palm oil) market. Higher crude oil prices will be more feasible for the biodiesel mandate."
Palm prices are impacted by crude oil's performance, as the tropical oil is used as component for biodiesel.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange rose 0.8 percent to 3,073 ringgit ($688) a tonne at the end of the trading day.
Traded volumes stood at 47,834 lots of 25 tonnes each, slightly above the 2015 average of 44,600 lots traded in a day.
Palm oil had previously charted six consecutive days of gains, hitting a four-year high last Thursday, before declining for one session on Tuesday.
Palm oil shipments from Malaysia, the world's No.2 producer of the tropical oil, fell 10-12 percent for the full month of November from the previous month, according to data from cargo surveyors on Wednesday.
In related vegetable oils, the January soybean oil contract on the CBOT rose 1.4 percent, while May soybeans on the Dalian Commodity Exchange dropped 0.1 percent.
The May contract of palm olein on the Dalian Commodity Exchange was down 1.2 percent.
Palm, soy and crude oil prices at 1057 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 3079 +22.00 3035 3092 310
MY PALM OIL JAN7 3076 +17.00 3026 3086 1341
MY PALM OIL FEB7 3073 +23.00 3017 3083 25316
CHINA PALM OLEIN MAY7 6212 -72.00 6114 6266 1051606
CHINA SOYOIL MAY7 7154 -10.00 7036 7214 1091496
CBOT SOY OIL JAN7 37.15 +0.55 36.52 37.26 21528
INDIA PALM OIL NOV6 554.40 +0.90 553.20 554.7 301
INDIA SOYOIL DEC6 722.3 +7.40 712.55 723.7 22560
NYMEX CRUDE JAN7 47.97 +2.74 45.22 48.22 274040
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 = 4.4640 ringgit)
($1 = 68.4550 Indian rupees)
($1 = 6.8807 Chinese yuan)