MARKET DEVELOPMENT
Palm Inches up on Weaker Production Data
Palm Inches up on Weaker Production Data
* Palm nudges up, cancelling earlier profit taking
* Drop in production lifts palm - trader
* Strengthening ringgit may dampen sentiment - trader
(Updates prices, adds new comments)
17/05/2017 (Reuters) - Malaysian palm oil futures edged up a fraction on Tuesday as the market rebounded from earlier profit taking, driven by a drop in production figures.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 0.04 percent to 2,610 ringgit ($604.17) a tonne.
Traded volumes stood at 45,378 lots of 25 tonnes each. Palm fell earlier as traders took profits on Monday's rally.
Traders said the market was adrift after reacting to encouraging export figures, awaiting new cues. Exports data released on Monday boosted sentiment.
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance reported a rise of 8.9 percent and 7.1 percent, respectively, in the exports of Malaysian palm oil products for the May 1-15 period from April 1-15.
"There is still a bullish bias as the exports data was quite good. The physical market is still strong, but a strengthening ringgit may hurt sentiment in the near term," a Kuala Lumpur-based trader added. Weakness in the ringgit makes palm more attractive to holders of foreign currencies. The trader said a fall in production data brought the market back into the black.
Southern Peninsula Palm Oil Millers' Association (SPPOMA) released data on Tuesday for May 1-15 showing a fall of 2.19 percent in production. In other related vegetable oils, soybean oil on the Chicago Board of Trade was up 0.09 percent, on track for a fourth consecutive session of gains. The September soybean oil contract on the Dalian Commodity Exchange rose 0.70 percent, while the September contract palm olein was up 0.11 percent. Palm prices are impacted by the movements of rival oilseed soy, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1126 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2830 +10.00 2804 2840 1067
MY PALM OIL JUL7 2691 +5.00 2660 2694 9431
MY PALM OIL AUG7 2610 +1.00 2583 2612 22242
CHINA PALM OLEIN SEP7 5494 +6.00 5462 5528 513082
CHINA SOYOIL SEP7 6024 +42.00 6010 6052 495214
CBOT SOY OIL JUL7 33.05 +3.40 32.99 33.27 6717
INDIA PALM OIL MAY7 509.60 +3.40 504.10 509.7 938
INDIA SOYOIL MAY7 630 +1.50 627.2 630 2360
NYMEX CRUDE JUN7 49.13 +0.28 48.79 49.34 122873
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 = 4.3200 ringgit)
($1 = 64.5550 Indian rupees)
($1 = 6.9052 Chinese yuan)
* Drop in production lifts palm - trader
* Strengthening ringgit may dampen sentiment - trader
(Updates prices, adds new comments)
17/05/2017 (Reuters) - Malaysian palm oil futures edged up a fraction on Tuesday as the market rebounded from earlier profit taking, driven by a drop in production figures.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 0.04 percent to 2,610 ringgit ($604.17) a tonne.
Traded volumes stood at 45,378 lots of 25 tonnes each. Palm fell earlier as traders took profits on Monday's rally.
Traders said the market was adrift after reacting to encouraging export figures, awaiting new cues. Exports data released on Monday boosted sentiment.
Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance reported a rise of 8.9 percent and 7.1 percent, respectively, in the exports of Malaysian palm oil products for the May 1-15 period from April 1-15.
"There is still a bullish bias as the exports data was quite good. The physical market is still strong, but a strengthening ringgit may hurt sentiment in the near term," a Kuala Lumpur-based trader added. Weakness in the ringgit makes palm more attractive to holders of foreign currencies. The trader said a fall in production data brought the market back into the black.
Southern Peninsula Palm Oil Millers' Association (SPPOMA) released data on Tuesday for May 1-15 showing a fall of 2.19 percent in production. In other related vegetable oils, soybean oil on the Chicago Board of Trade was up 0.09 percent, on track for a fourth consecutive session of gains. The September soybean oil contract on the Dalian Commodity Exchange rose 0.70 percent, while the September contract palm olein was up 0.11 percent. Palm prices are impacted by the movements of rival oilseed soy, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1126 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2830 +10.00 2804 2840 1067
MY PALM OIL JUL7 2691 +5.00 2660 2694 9431
MY PALM OIL AUG7 2610 +1.00 2583 2612 22242
CHINA PALM OLEIN SEP7 5494 +6.00 5462 5528 513082
CHINA SOYOIL SEP7 6024 +42.00 6010 6052 495214
CBOT SOY OIL JUL7 33.05 +3.40 32.99 33.27 6717
INDIA PALM OIL MAY7 509.60 +3.40 504.10 509.7 938
INDIA SOYOIL MAY7 630 +1.50 627.2 630 2360
NYMEX CRUDE JUN7 49.13 +0.28 48.79 49.34 122873
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 = 4.3200 ringgit)
($1 = 64.5550 Indian rupees)
($1 = 6.9052 Chinese yuan)