MARKET DEVELOPMENT
VEGOILS-Palm Reverses Losses, Tracks Rising Soyoil
VEGOILS-Palm Reverses Losses, Tracks Rising Soyoil
* Market up for third session in four
* Slower output growth aided market boost - traders
* Palm oil may retest resistance at 2,542 rgt -technicals
(Updates with closing prices, quotes)
27/04/2017 (Reuters) - Malaysian palm oil rebounded from earlier losses on Wednesday evening, rising for a third session in four as it was lifted by stronger performing soyoil and in a technical correction.
Expectations of slower than forecast output growth also aided the market recovery in late trade, said traders.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 1.1 percent to 2,514 ringgit ($578.46) a tonne by the close of trade, its strongest daily gains in a week.
Traded volumes stood at 55,888 lots of 25 tonnes each at the close of trade.
"The market is riding on expectations of better performing soyoil on the Chicago Board of Trade despite a stronger ringgit," said a futures trader in Kuala Lumpur, as the ringgit strength earlier contributed to the decline in palm prices.
The ringgit, palm's currency of trade, rose 0.5 percent against the dollar to its strongest level in over five months. A stronger ringgit usually makes the vegetable oil more expensive for holders of foreign currencies.
Palm oil production in Indonesia and Malaysia, which account for more than 80 percent of global output, is seen rising in the coming months, in line with the seasonal trend and as the lingering effects of a crop-damaging El Nino wear off.
Palm oil may retest a resistance at 2,542 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade rose 0.6 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell 0.2 percent.
The September contract for palm olein dropped 0.1 percent.
Palm, soy and crude oil prices at 1052 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2664 +30.00 2635 2669 531
MY PALM OIL JUN7 2583 +32.00 2542 2583 4934
MY PALM OIL JUL7 2512 +28.00 2476 2517 29236
CHINA PALM OLEIN SEP7 5110 -6.00 5078 5142 461340
CHINA SOYOIL SEP7 5830 -10.00 5806 5862 419808
CBOT SOY OIL JUL7 32.06 +0.21 31.71 32.06 9562
INDIA PALM OIL APR7 518.20 +1.70 516.30 518.5 231
INDIA SOYOIL MAY7 613.95 +1.35 609.8 614.5 17910
NYMEX CRUDE JUN7 49.33 -0.23 49.19 49.58 84299
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 = 4.3460 ringgit)
($1 = 64.1375 Indian rupees)
($1 = 6.8906 Chinese yuan)
* Slower output growth aided market boost - traders
* Palm oil may retest resistance at 2,542 rgt -technicals
(Updates with closing prices, quotes)
27/04/2017 (Reuters) - Malaysian palm oil rebounded from earlier losses on Wednesday evening, rising for a third session in four as it was lifted by stronger performing soyoil and in a technical correction.
Expectations of slower than forecast output growth also aided the market recovery in late trade, said traders.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 1.1 percent to 2,514 ringgit ($578.46) a tonne by the close of trade, its strongest daily gains in a week.
Traded volumes stood at 55,888 lots of 25 tonnes each at the close of trade.
"The market is riding on expectations of better performing soyoil on the Chicago Board of Trade despite a stronger ringgit," said a futures trader in Kuala Lumpur, as the ringgit strength earlier contributed to the decline in palm prices.
The ringgit, palm's currency of trade, rose 0.5 percent against the dollar to its strongest level in over five months. A stronger ringgit usually makes the vegetable oil more expensive for holders of foreign currencies.
Palm oil production in Indonesia and Malaysia, which account for more than 80 percent of global output, is seen rising in the coming months, in line with the seasonal trend and as the lingering effects of a crop-damaging El Nino wear off.
Palm oil may retest a resistance at 2,542 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade rose 0.6 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell 0.2 percent.
The September contract for palm olein dropped 0.1 percent.
Palm, soy and crude oil prices at 1052 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2664 +30.00 2635 2669 531
MY PALM OIL JUN7 2583 +32.00 2542 2583 4934
MY PALM OIL JUL7 2512 +28.00 2476 2517 29236
CHINA PALM OLEIN SEP7 5110 -6.00 5078 5142 461340
CHINA SOYOIL SEP7 5830 -10.00 5806 5862 419808
CBOT SOY OIL JUL7 32.06 +0.21 31.71 32.06 9562
INDIA PALM OIL APR7 518.20 +1.70 516.30 518.5 231
INDIA SOYOIL MAY7 613.95 +1.35 609.8 614.5 17910
NYMEX CRUDE JUN7 49.33 -0.23 49.19 49.58 84299
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 = 4.3460 ringgit)
($1 = 64.1375 Indian rupees)
($1 = 6.8906 Chinese yuan)