MARKET DEVELOPMENT
VEGOILS-Palm Weakens on Stronger Ringgit, Higher Than Forecast Export Tax
VEGOILS-Palm Weakens on Stronger Ringgit, Higher Than Forecast Export Tax
* Market down for second straight session
* Palm sees biggest daily decline in four days
* Hits intraday and six-month low of 2,563 rgt/T
* May crude palm oil export tax set at 7 pct
(Updates with closing prices, quotes)
14/04/2017 (Reuters) - Malaysian palm oil futures ended lower on Thursday, weighed down by a stronger ringgit and an announcement that Malaysia's crude palm oil export tax would be higher than expected.
The ringgit, palm's oil currency of trade, strengthened 0.3 percent on Thursday evening to 4.4100 against the dollar, its strongest level in more than two weeks. A stronger ringgit makes the tropical oil more expensive for holders of other currencies.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed down 0.9 percent at 2,566 ringgit ($581.86) but it had edged off a session low of 2,563 ringgit, its lowest level since October.
Traded volumes stood at 64,171 lots of 25 tonnes each on Thursday evening. "A stronger ringgit led the movement," said a futures trader from Kuala Lumpur.
Another trader said Malaysia's announcement of May's crude palm oil tax also weighed. "Industry players thought it would be 6.5 percent, but it came in higher than expected at 7 percent," he said.
While the tax was lower than April's level of 7.5 percent, the higher-than-expected May level will add to buyers' costs and may dampen demand. The May tax announcement was issued on the Malaysian Palm Oil Board website on Thursday.
Shipments of palm oil and related products are expected to rise in April and May before the Muslim fasting month of Ramadan, which begins at the end of May.
Palm oil exports rose 20-25 percent in the first 10 days of April compared with the same period last month, according to cargo surveyor data.
In related oils, soybean oil on the Chicago Board of Trade rose 0.5 percent, while the September soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.
The September contract for palm olein rose 0.8 percent.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2760 -11.00 2760 2800 773
MY PALM OIL MAY7 2662 -11.00 2662 2719 3551
MY PALM OIL JUN7 2564 -23.00 2563 2616 27157
CHINA PALM OLEIN SEP7 5246 +40.00 5180 5258 437962
CHINA SOYOIL SEP7 5956 +6.00 5890 5962 431608
CBOT SOY OIL MAY7 31.39 +0.15 31.24 31.48 21588
INDIA PALM OIL APR7 516.80 -0.30 514.70 521.5 1477
INDIA SOYOIL APR7 633.55 -2.70 633.45 638.6 2290
NYMEX CRUDE MAY7 53.07 -0.04 52.82 53.15 84028
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 = 4.4100 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.8850 Chinese yuan)
* Palm sees biggest daily decline in four days
* Hits intraday and six-month low of 2,563 rgt/T
* May crude palm oil export tax set at 7 pct
(Updates with closing prices, quotes)
14/04/2017 (Reuters) - Malaysian palm oil futures ended lower on Thursday, weighed down by a stronger ringgit and an announcement that Malaysia's crude palm oil export tax would be higher than expected.
The ringgit, palm's oil currency of trade, strengthened 0.3 percent on Thursday evening to 4.4100 against the dollar, its strongest level in more than two weeks. A stronger ringgit makes the tropical oil more expensive for holders of other currencies.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed down 0.9 percent at 2,566 ringgit ($581.86) but it had edged off a session low of 2,563 ringgit, its lowest level since October.
Traded volumes stood at 64,171 lots of 25 tonnes each on Thursday evening. "A stronger ringgit led the movement," said a futures trader from Kuala Lumpur.
Another trader said Malaysia's announcement of May's crude palm oil tax also weighed. "Industry players thought it would be 6.5 percent, but it came in higher than expected at 7 percent," he said.
While the tax was lower than April's level of 7.5 percent, the higher-than-expected May level will add to buyers' costs and may dampen demand. The May tax announcement was issued on the Malaysian Palm Oil Board website on Thursday.
Shipments of palm oil and related products are expected to rise in April and May before the Muslim fasting month of Ramadan, which begins at the end of May.
Palm oil exports rose 20-25 percent in the first 10 days of April compared with the same period last month, according to cargo surveyor data.
In related oils, soybean oil on the Chicago Board of Trade rose 0.5 percent, while the September soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.
The September contract for palm olein rose 0.8 percent.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2760 -11.00 2760 2800 773
MY PALM OIL MAY7 2662 -11.00 2662 2719 3551
MY PALM OIL JUN7 2564 -23.00 2563 2616 27157
CHINA PALM OLEIN SEP7 5246 +40.00 5180 5258 437962
CHINA SOYOIL SEP7 5956 +6.00 5890 5962 431608
CBOT SOY OIL MAY7 31.39 +0.15 31.24 31.48 21588
INDIA PALM OIL APR7 516.80 -0.30 514.70 521.5 1477
INDIA SOYOIL APR7 633.55 -2.70 633.45 638.6 2290
NYMEX CRUDE MAY7 53.07 -0.04 52.82 53.15 84028
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 = 4.4100 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.8850 Chinese yuan)