MARKET DEVELOPMENT
VEGOILS-Palm Inches Up on Strong Overseas Market, Weak Ringgit
VEGOILS-Palm Inches Up on Strong Overseas Market, Weak Ringgit
* Firm external markets lifts palm - traders
* Mixed signals as contract breaks resistance briefly - technicals
08/02/2017 (Reuters) - Malaysian palm oil futures rose in the first half of Tuesday, helped by strong external markets and a weak ringgit.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 3,071 ringgit ($692.45) per tonne at the mid-day break. Traded volumes stood at 22,251 lots of 25 tonnes each.
The futures contract opened firmer riding on strong overseas market and technical buying as it moved above last week's high of 3,085 ringgit, a Kuala Lumpur-based trader said.
While a slight fall on the Dalian Commodities Exchange led to some profit booking, a weaker ringgit helped offset the sell-off, the trader said. The ringgit fell 0.16 percent to 4.4340 to the US dollar in early trade.
Weakness in the ringgit, which palm is traded in, makes the tropical oil more attractive to traders holding foreign currencies.
The May contract for Dalian soybean oil slipped 0.06 percent, while the palm olein contract gained 0.03 percent.
Signals are mixed for palm, as the contract approaches a resistance at 3,089 ringgit per tonne again, according to Reuters market analyst for commodities and energy technicals, Wang Tao.
"A break above the resistance could lead to a gain to 3,169 ringgit. Even though palm oil has briefly pierced above 3,089 ringgit, a valid break could possibly be confirmed when it stands firm above this level," he said.
The market continues to be steady on the back of good fundamentals, said another Kuala Lumpur-based trader.
"Sentiment remains firm as supply is still tight and external markets are holding well. CBOT closed higher last evening," he said.
On the Chicago Board Of Trade, the March soybean oil contract gained 0.15 percent.
Palm, soy and crude oil prices at 0452 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3277 +15.00 3272 3286 70
MY PALM OIL MAR7 3156 +4.00 3153 3175 522
MY PALM OIL APR7 3071 +3.00 3066 3094 11005
CHINA PALM OLEIN MAY7 6146 +2.00 6134 6188 237368
CHINA SOYOIL MAY7 6866 -4.00 6852 6906 178288
CBOT SOY OIL MAR7 34.48 +1.20 34.44 34.64 3195
INDIA PALM OIL FEB7 579.70 +1.20 579.00 580 151
INDIA SOYOIL FEB7 704.5 +2.00 703.8 704.7 540
NYMEX CRUDE MAR7 53.12 +0.11 53.11 53.24 12170
($1 = 4.4340 ringgit)
($1 = 67.35 Indian rupees)
($1 = 6.8750 Chinese yuan)
* Mixed signals as contract breaks resistance briefly - technicals
08/02/2017 (Reuters) - Malaysian palm oil futures rose in the first half of Tuesday, helped by strong external markets and a weak ringgit.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 3,071 ringgit ($692.45) per tonne at the mid-day break. Traded volumes stood at 22,251 lots of 25 tonnes each.
The futures contract opened firmer riding on strong overseas market and technical buying as it moved above last week's high of 3,085 ringgit, a Kuala Lumpur-based trader said.
While a slight fall on the Dalian Commodities Exchange led to some profit booking, a weaker ringgit helped offset the sell-off, the trader said. The ringgit fell 0.16 percent to 4.4340 to the US dollar in early trade.
Weakness in the ringgit, which palm is traded in, makes the tropical oil more attractive to traders holding foreign currencies.
The May contract for Dalian soybean oil slipped 0.06 percent, while the palm olein contract gained 0.03 percent.
Signals are mixed for palm, as the contract approaches a resistance at 3,089 ringgit per tonne again, according to Reuters market analyst for commodities and energy technicals, Wang Tao.
"A break above the resistance could lead to a gain to 3,169 ringgit. Even though palm oil has briefly pierced above 3,089 ringgit, a valid break could possibly be confirmed when it stands firm above this level," he said.
The market continues to be steady on the back of good fundamentals, said another Kuala Lumpur-based trader.
"Sentiment remains firm as supply is still tight and external markets are holding well. CBOT closed higher last evening," he said.
On the Chicago Board Of Trade, the March soybean oil contract gained 0.15 percent.
Palm, soy and crude oil prices at 0452 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3277 +15.00 3272 3286 70
MY PALM OIL MAR7 3156 +4.00 3153 3175 522
MY PALM OIL APR7 3071 +3.00 3066 3094 11005
CHINA PALM OLEIN MAY7 6146 +2.00 6134 6188 237368
CHINA SOYOIL MAY7 6866 -4.00 6852 6906 178288
CBOT SOY OIL MAR7 34.48 +1.20 34.44 34.64 3195
INDIA PALM OIL FEB7 579.70 +1.20 579.00 580 151
INDIA SOYOIL FEB7 704.5 +2.00 703.8 704.7 540
NYMEX CRUDE MAR7 53.12 +0.11 53.11 53.24 12170
($1 = 4.4340 ringgit)
($1 = 67.35 Indian rupees)
($1 = 6.8750 Chinese yuan)