MARKET DEVELOPMENT
VEGOILS-Palm Trades Higher On Tight Supplies, Tracking Stronger Soyoil
VEGOILS-Palm Trades Higher On Tight Supplies, Tracking Stronger Soyoil
* Palm little affected by forecast of rising production
* Palm oil poised to develop a trend - Technicals
(Updates latest prices, quote)
18/01/2017 (Reuters) - Malaysian palm oil futures rose more than 1 percent in trade on Tuesday, earlier tracking gains in rival oilseed soy and supported by bullish sentiment on tight market supplies in the evening.
It was little affected by an industry group forecast of rising production this year as the market has already factored this in, traders said.
Palm oil output may rise by 12 percent this year to 19.4 million tonnes from 17.4 million tonnes in 2016, the Malaysian Palm Oil Board (MPOB) said at a conference in Kuala Lumpur.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange had risen 1.6 percent to 3,159 ringgit ($708) a tonne by the end of the trading session. Traded volumes stood at 38,068 lots of 25 tonnes each.
"Physical market prices are very high, there is no oil in the market," said a futures trader based in Kuala Lumpur.
Another trader had earlier said the market in the morning was supported by stronger performing soyoil on the Chicago Board of Trade.
"Other factors are already known facts and we have yet to see higher production," he said.
Palm oil prices are typically impacted by the movement of related vegetable oils as they compete for a share in the global edible oils market.
The March soybean oil contract on the CBOT rose 1 percent, while the May soybean oil contract on the Dalian Commodity Exchange was up 0.8 percent.
Chicago soybean futures also rose as heavy rains across Argentina's central crop belt raised concerns over yield losses.
In other related edible oils, the May contract for Dalian palm olein gained 0.2 percent.
Palm oil is poised to leave a wedge and develop a trend, as it is approaching the upper trendline of the pattern, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 1041 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3255 +48.00 3218 3255 1299
MY PALM OIL MAR7 3197 +53.00 3145 3197 9964
MY PALM OIL APR7 3159 +49.00 3110 3160 18565
CHINA PALM OLEIN MAY7 6318 +12.00 6272 6374 520784
CHINA SOYOIL MAY7 7024 +56.00 6970 7064 405022
CBOT SOY OIL MAR7 35.98 +0.38 35.66 36.07 15919
INDIA PALM OIL JAN7 595.40 +4.20 591.00 595.4 730
INDIA SOYOIL JAN7 734.3 +3.30 732 734.8 5360
NYMEX CRUDE FEB7 53.13 +0.76 52.12 53.34 191859
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 = 4.4600 ringgit)
($1 = 68.0200 Indian rupees)
($1 = 6.8560 Chinese yuan)
* Palm oil poised to develop a trend - Technicals
(Updates latest prices, quote)
18/01/2017 (Reuters) - Malaysian palm oil futures rose more than 1 percent in trade on Tuesday, earlier tracking gains in rival oilseed soy and supported by bullish sentiment on tight market supplies in the evening.
It was little affected by an industry group forecast of rising production this year as the market has already factored this in, traders said.
Palm oil output may rise by 12 percent this year to 19.4 million tonnes from 17.4 million tonnes in 2016, the Malaysian Palm Oil Board (MPOB) said at a conference in Kuala Lumpur.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange had risen 1.6 percent to 3,159 ringgit ($708) a tonne by the end of the trading session. Traded volumes stood at 38,068 lots of 25 tonnes each.
"Physical market prices are very high, there is no oil in the market," said a futures trader based in Kuala Lumpur.
Another trader had earlier said the market in the morning was supported by stronger performing soyoil on the Chicago Board of Trade.
"Other factors are already known facts and we have yet to see higher production," he said.
Palm oil prices are typically impacted by the movement of related vegetable oils as they compete for a share in the global edible oils market.
The March soybean oil contract on the CBOT rose 1 percent, while the May soybean oil contract on the Dalian Commodity Exchange was up 0.8 percent.
Chicago soybean futures also rose as heavy rains across Argentina's central crop belt raised concerns over yield losses.
In other related edible oils, the May contract for Dalian palm olein gained 0.2 percent.
Palm oil is poised to leave a wedge and develop a trend, as it is approaching the upper trendline of the pattern, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 1041 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3255 +48.00 3218 3255 1299
MY PALM OIL MAR7 3197 +53.00 3145 3197 9964
MY PALM OIL APR7 3159 +49.00 3110 3160 18565
CHINA PALM OLEIN MAY7 6318 +12.00 6272 6374 520784
CHINA SOYOIL MAY7 7024 +56.00 6970 7064 405022
CBOT SOY OIL MAR7 35.98 +0.38 35.66 36.07 15919
INDIA PALM OIL JAN7 595.40 +4.20 591.00 595.4 730
INDIA SOYOIL JAN7 734.3 +3.30 732 734.8 5360
NYMEX CRUDE FEB7 53.13 +0.76 52.12 53.34 191859
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 = 4.4600 ringgit)
($1 = 68.0200 Indian rupees)
($1 = 6.8560 Chinese yuan)