MARKET DEVELOPMENT
VEGOILS-Palm Oil Hits Near 4-Month Low on Rising Output, Weak Demand
VEGOILS-Palm Oil Hits Near 4-Month Low on Rising Output, Weak Demand
* Palm sees fifth losing day in six
* Weak demand, rising output, competitive soyoil weigh - trader
* Palm may test support at 2,750 rgt/T - technicals
(Updates latest prices)
24/02/2017 (Reuters) - Malaysian palm oil futures fell on Thursday evening, charting a fifth session of losses in six and hitting their lowest in nearly four months as concerns persisted over rising production and weak exports.
Benchmark palm oil futures for May on the Bursa Malaysia Derivatives Exchange declined 1 percent to 2,782 ringgit ($625.59) a tonne at the close of trade. The contract dropped to as low as 2,743 ringgit in the second half of trading, its weakest since Nov. 4.
Palm had gained about 1 percent on Wednesday, snapping four previous sessions of losses, but lost nearly 9 percent since the start of last week.
Traded volumes stood at 95,844 lots of 25 tonnes each on Thursday evening.
"After four days of drop the market pulled back, but now it is coming down again. People feel that there is more production coming, and demand is slowing down," said a trader from Kuala Lumpur.
"There is also too much pressure from soyoil," he said. Lower prices of soyoil make it more attractive as the preferred edible oil in top consumers such as China and India.
Palm oil demand for the full month of February is expected to fall after shipments rose in January over the Chinese Lunar New Year celebrations.
Exports declined 0.8 percent in the Feb. 1-20 time period from the same period last month, according to data from cargo surveyor Intertek Testing Services.
However, data from another cargo surveyor, Societe Generale de Surveillance, showed that demand rose 1.7 percent.
Output is forecast to rise in February as palm's fresh fruit yields are seen recovering from the El Nino's crop damaging effects. Government data showed it had declined 13.4 percent in January, its sharpest drop in a year and its lowest level since March. (MYPOMP-CPOTT)
Palm oil may test a support at 2,750 ringgit per tonne, a break below which could cause a loss to the next support at 2,703 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade fell 0.3 percent, while the soybean oil contract on the Dalian Commodity Exchange declined 0.8 percent.
The May contract for palm olein on China's Dalian Commodity Exchange declined 1.1 percent.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 2946 -77.00 2885 2996 2605
MY PALM OIL APR7 2836 -40.00 2790 2877 8544
MY PALM OIL MAY7 2782 -27.00 2743 2810 44068
CHINA PALM OLEIN MAY7 5790 -62.00 5760 5918 648982
CHINA SOYOIL MAY7 6584 -52.00 6560 6676 396318
CBOT SOY OIL MAR7 32.61 -0.11 32.43 32.91 3749
INDIA PALM OIL FEB7 544.50 -4.10 539.70 544.5 1164
INDIA SOYOIL MAR7 652 -2.80 648.5 652.6 28590
NYMEX CRUDE APR7 54.31 +0.72 53.87 54.46 99287
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 = 4.4470 ringgit)
($1 = 66.8250 Indian rupees)
($1 = 6.8762 Chinese yuan)
* Weak demand, rising output, competitive soyoil weigh - trader
* Palm may test support at 2,750 rgt/T - technicals
(Updates latest prices)
24/02/2017 (Reuters) - Malaysian palm oil futures fell on Thursday evening, charting a fifth session of losses in six and hitting their lowest in nearly four months as concerns persisted over rising production and weak exports.
Benchmark palm oil futures for May on the Bursa Malaysia Derivatives Exchange declined 1 percent to 2,782 ringgit ($625.59) a tonne at the close of trade. The contract dropped to as low as 2,743 ringgit in the second half of trading, its weakest since Nov. 4.
Palm had gained about 1 percent on Wednesday, snapping four previous sessions of losses, but lost nearly 9 percent since the start of last week.
Traded volumes stood at 95,844 lots of 25 tonnes each on Thursday evening.
"After four days of drop the market pulled back, but now it is coming down again. People feel that there is more production coming, and demand is slowing down," said a trader from Kuala Lumpur.
"There is also too much pressure from soyoil," he said. Lower prices of soyoil make it more attractive as the preferred edible oil in top consumers such as China and India.
Palm oil demand for the full month of February is expected to fall after shipments rose in January over the Chinese Lunar New Year celebrations.
Exports declined 0.8 percent in the Feb. 1-20 time period from the same period last month, according to data from cargo surveyor Intertek Testing Services.
However, data from another cargo surveyor, Societe Generale de Surveillance, showed that demand rose 1.7 percent.
Output is forecast to rise in February as palm's fresh fruit yields are seen recovering from the El Nino's crop damaging effects. Government data showed it had declined 13.4 percent in January, its sharpest drop in a year and its lowest level since March. (MYPOMP-CPOTT)
Palm oil may test a support at 2,750 ringgit per tonne, a break below which could cause a loss to the next support at 2,703 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade fell 0.3 percent, while the soybean oil contract on the Dalian Commodity Exchange declined 0.8 percent.
The May contract for palm olein on China's Dalian Commodity Exchange declined 1.1 percent.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 2946 -77.00 2885 2996 2605
MY PALM OIL APR7 2836 -40.00 2790 2877 8544
MY PALM OIL MAY7 2782 -27.00 2743 2810 44068
CHINA PALM OLEIN MAY7 5790 -62.00 5760 5918 648982
CHINA SOYOIL MAY7 6584 -52.00 6560 6676 396318
CBOT SOY OIL MAR7 32.61 -0.11 32.43 32.91 3749
INDIA PALM OIL FEB7 544.50 -4.10 539.70 544.5 1164
INDIA SOYOIL MAR7 652 -2.80 648.5 652.6 28590
NYMEX CRUDE APR7 54.31 +0.72 53.87 54.46 99287
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 = 4.4470 ringgit)
($1 = 66.8250 Indian rupees)
($1 = 6.8762 Chinese yuan)