MARKET DEVELOPMENT
VEGOILS-Palm Gains 2 Pct on Slower Export Decline, Stronger Soy
VEGOILS-Palm Gains 2 Pct on Slower Export Decline, Stronger Soy
* Export demand, lower production supporting market - trader
* Sees support at 3,100 rgt, resistance at 3,140 rgt - trader
(Updates latest prices)
28/12/2016 (Reuters) - Malaysian palm oil gained 2.2 percent by the end of Tuesday's trading day, buoyed by data showing a slower decline in exports and improved sentiment for rival oils on Dalian and CBOT.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange rose to 3,128 ringgit ($699.29) per tonne. It earlier reached an intraday high of 3,134 ringgit, and charted its biggest daily gain in a month and a half.
Last week, the contract logged a 3.2 percent decline, the biggest loss in four weeks. Traded volumes were thin with 36,764 lots of 25 tonnes each changing hands.
A trader based in Kuala Lumpur said although many traders have yet to return from their holidays, the market has responded positively to the export figures released on Monday.
Exports of Malaysian palm oil products for Dec. 1 - 25 fell 5.6 percent to 845,441 tonnes from 895,625 tonnes shipped during Nov. 1 - 25, cargo surveyor Intertek Testing Services said on Monday. The data for Dec. 1 - 20 showed a 14.4 percent decline and had dragged down the market at the time.
"Exports are still down but have improved. Dalian has also been recovering the last two days," the trader said.
"With better external markets and local support, the market is on a plus."
The trader saw an immediate support level for the palm futures at 3,100 ringgit, with a resistance at 3,140 ringgit.
Another trader said the Chinese are gearing up their purchases ahead of the lunar new year celebrations at the end of January, pushing palm up.
"Indeed, the restocking activities in China seems to be bullish for the market. As export demand is robust coupled with lower production, looks like a bullish picture is forming," the trader said.
The May contract for Dalian soybean oil climbed 1.8 percent, while the palm olein contract rose 2.6 percent.
On the Chicago Board Of Trade, the March soybean oil contract was up 1.3 percent.
Palm, soy and crude oil prices at 1040 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3220 +70.00 3170 3226 397
MY PALM OIL FEB7 3162 +84.00 3079 3166 2019
MY PALM OIL MAR7 3130 +70.00 3065 3134 16077
CHINA PALM OLEIN MAY7 6246 +160.00 6080 6264 776658
CHINA SOYOIL MAY7 6994 +124.00 6854 7000 438944
CBOT SOY OIL MAR7 35.32 +0.46 34.85 35.38 9650
INDIA PALM OIL DEC6 574.10 +4.80 570.50 574.7 280
INDIA SOYOIL JAN7 715.85 +3.00 714.95 717.5 13480
NYMEX CRUDE FEB7 53.20 +0.18 53.03 53.38 40458
($1 = 4.4760 ringgit)
($1 = 68.0078 Indian rupees)
($1 = 6.9500 Chinese yuan)
* Sees support at 3,100 rgt, resistance at 3,140 rgt - trader
(Updates latest prices)
28/12/2016 (Reuters) - Malaysian palm oil gained 2.2 percent by the end of Tuesday's trading day, buoyed by data showing a slower decline in exports and improved sentiment for rival oils on Dalian and CBOT.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange rose to 3,128 ringgit ($699.29) per tonne. It earlier reached an intraday high of 3,134 ringgit, and charted its biggest daily gain in a month and a half.
Last week, the contract logged a 3.2 percent decline, the biggest loss in four weeks. Traded volumes were thin with 36,764 lots of 25 tonnes each changing hands.
A trader based in Kuala Lumpur said although many traders have yet to return from their holidays, the market has responded positively to the export figures released on Monday.
Exports of Malaysian palm oil products for Dec. 1 - 25 fell 5.6 percent to 845,441 tonnes from 895,625 tonnes shipped during Nov. 1 - 25, cargo surveyor Intertek Testing Services said on Monday. The data for Dec. 1 - 20 showed a 14.4 percent decline and had dragged down the market at the time.
"Exports are still down but have improved. Dalian has also been recovering the last two days," the trader said.
"With better external markets and local support, the market is on a plus."
The trader saw an immediate support level for the palm futures at 3,100 ringgit, with a resistance at 3,140 ringgit.
Another trader said the Chinese are gearing up their purchases ahead of the lunar new year celebrations at the end of January, pushing palm up.
"Indeed, the restocking activities in China seems to be bullish for the market. As export demand is robust coupled with lower production, looks like a bullish picture is forming," the trader said.
The May contract for Dalian soybean oil climbed 1.8 percent, while the palm olein contract rose 2.6 percent.
On the Chicago Board Of Trade, the March soybean oil contract was up 1.3 percent.
Palm, soy and crude oil prices at 1040 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3220 +70.00 3170 3226 397
MY PALM OIL FEB7 3162 +84.00 3079 3166 2019
MY PALM OIL MAR7 3130 +70.00 3065 3134 16077
CHINA PALM OLEIN MAY7 6246 +160.00 6080 6264 776658
CHINA SOYOIL MAY7 6994 +124.00 6854 7000 438944
CBOT SOY OIL MAR7 35.32 +0.46 34.85 35.38 9650
INDIA PALM OIL DEC6 574.10 +4.80 570.50 574.7 280
INDIA SOYOIL JAN7 715.85 +3.00 714.95 717.5 13480
NYMEX CRUDE FEB7 53.20 +0.18 53.03 53.38 40458
($1 = 4.4760 ringgit)
($1 = 68.0078 Indian rupees)
($1 = 6.9500 Chinese yuan)