MARKET DEVELOPMENT
VEGOILS-Palm Hits 6-Week Peak Tracking Soyoil, Lower Output Forecast
VEGOILS-Palm Hits 6-Week Peak Tracking Soyoil, Lower Output Forecast
* Palm rises to intraday high of 2,598 rgt/T
* Market gains to "fizzle out" in coming days -Trader
* Palm ITS exports from July 1-10 down nearly 2 pct
* SGS exports up nearly 4 pct
(Updates with closing prices)
11/07/2017 (Reuters) - Malaysian palm oil futures hit their highest in six weeks on Monday, aided by rival oilseed soy's gains on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
The market was also up after industry regulator data on Monday showed falling production.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.5 percent higher at 2,593 ringgit ($604) a tonne, its strongest daily gain in a week.
It earlier hit 2,598 ringgit a tonne, its highest level since May 25.
Traded volumes on Monday totalled 47,228 lots of 25 tonnes each.
"The market is up on external factors, the immediate reaction is to soyoil which has surged higher," said a Kuala Lumpur-based trader, adding that it was also supported by a decline in output data.
June production in Malaysia, the world's No.2 palm producer, fell 8.5 percent to 1.51 million tonnes, leading to a decline in end-stocks as well, data from the Malaysian Palm Oil Board showed on Monday.
Inventories fell 1.9 percent to 1.56 million tonnes, while exports for the full month of June dropped 8.4 percent to 1.38 million tonnes.
"The market could move up more in the afternoon because of the report, but gains could fizzle out in the next few days," said the trader, as production is seen rising on seasonal trends in the coming months while demand weakens. Shipments of palm oil products from Malaysia fell 1.9 percent during July 1-10, down from the corresponding period in June, data from cargo surveyor Intertek Testing Services showed on Monday.
However, another cargo surveyor, Societe Generale de Surveillance, showed exports rising 3.8 percent during the same period.
In other related oils, soybean oil on the Chicago Board of Trade rose 1.1 percent, while September soybean oil on the Dalian Commodity Exchange surged 2.1 percent.
The September palm olein contract was up 1.7 percent.
Palm oil prices are impacted by movements in related edible oils, as they compete for a share in the global edible oils market.
Palm, soy and crude oil prices at 1052 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL7 2705 +37.00 2682 2705 561
MY PALM OIL AUG7 2642 +41.00 2625 2651 4203
MY PALM OIL SEP7 2592 +39.00 2574 2598 20461
CHINA PALM OLEIN SEP7 5502 +92.00 5402 5526 373568
CHINA SOYOIL SEP7 6110 +124.00 5990 6126 467312
CBOT SOY OIL DEC7 33.7 +0.00 33.45 33.84 16682
INDIA PALM OIL JUL7 491.80 +5.30 487.90 493.9 1717
INDIA SOYOIL JUL7 643.35 +1.80 640 646.5 10400
NYMEX CRUDE AUG7 43.75 -0.48 43.71 44.72 164121
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 = 4.2950 ringgit)
($1 = 64.5275 Indian rupees)
($1 = 6.8028 Chinese yuan)
* Market gains to "fizzle out" in coming days -Trader
* Palm ITS exports from July 1-10 down nearly 2 pct
* SGS exports up nearly 4 pct
(Updates with closing prices)
11/07/2017 (Reuters) - Malaysian palm oil futures hit their highest in six weeks on Monday, aided by rival oilseed soy's gains on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
The market was also up after industry regulator data on Monday showed falling production.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.5 percent higher at 2,593 ringgit ($604) a tonne, its strongest daily gain in a week.
It earlier hit 2,598 ringgit a tonne, its highest level since May 25.
Traded volumes on Monday totalled 47,228 lots of 25 tonnes each.
"The market is up on external factors, the immediate reaction is to soyoil which has surged higher," said a Kuala Lumpur-based trader, adding that it was also supported by a decline in output data.
June production in Malaysia, the world's No.2 palm producer, fell 8.5 percent to 1.51 million tonnes, leading to a decline in end-stocks as well, data from the Malaysian Palm Oil Board showed on Monday.
Inventories fell 1.9 percent to 1.56 million tonnes, while exports for the full month of June dropped 8.4 percent to 1.38 million tonnes.
"The market could move up more in the afternoon because of the report, but gains could fizzle out in the next few days," said the trader, as production is seen rising on seasonal trends in the coming months while demand weakens. Shipments of palm oil products from Malaysia fell 1.9 percent during July 1-10, down from the corresponding period in June, data from cargo surveyor Intertek Testing Services showed on Monday.
However, another cargo surveyor, Societe Generale de Surveillance, showed exports rising 3.8 percent during the same period.
In other related oils, soybean oil on the Chicago Board of Trade rose 1.1 percent, while September soybean oil on the Dalian Commodity Exchange surged 2.1 percent.
The September palm olein contract was up 1.7 percent.
Palm oil prices are impacted by movements in related edible oils, as they compete for a share in the global edible oils market.
Palm, soy and crude oil prices at 1052 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL7 2705 +37.00 2682 2705 561
MY PALM OIL AUG7 2642 +41.00 2625 2651 4203
MY PALM OIL SEP7 2592 +39.00 2574 2598 20461
CHINA PALM OLEIN SEP7 5502 +92.00 5402 5526 373568
CHINA SOYOIL SEP7 6110 +124.00 5990 6126 467312
CBOT SOY OIL DEC7 33.7 +0.00 33.45 33.84 16682
INDIA PALM OIL JUL7 491.80 +5.30 487.90 493.9 1717
INDIA SOYOIL JUL7 643.35 +1.80 640 646.5 10400
NYMEX CRUDE AUG7 43.75 -0.48 43.71 44.72 164121
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 = 4.2950 ringgit)
($1 = 64.5275 Indian rupees)
($1 = 6.8028 Chinese yuan)