MARKET DEVELOPMENT
VEGOILS-Palm Drops on Weaker Soyoil, Higher Production Outlook
VEGOILS-Palm Drops on Weaker Soyoil, Higher Production Outlook
* Market uncertain over production rebound levels - Trader
* Palm biased to test resistance at 2,591 rgt/T - Technicals
25/07/2017 (Reuters) - Malaysian palm oil futures on Monday posted their worst session in a week, as it tracked weaker performances in rival oils.
Traders showed bearish sentiments on forecasts of rising output, but are uncertain about how much production will be recorded in the coming months.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 1.2 percent at 2,542 ringgit ($593.72) at the midday break.
Traded volumes stood at 11,359 lots of 25 tonnes each at noon.
"The market fell tracking weaker soybean oil, as well as on concerns over higher production in the coming weeks," said a Kuala Lumpur-based futures trader.
He added that uncertainty over the extent of output gains has resulted in lower traded volumes on Bursa.
Palm oil production in Malaysia, the second-largest producer after Indonesia, is seen rising in the-second half of the year, in line with seasonal trends and is expected to peak in October.
Production for 2017 is estimated to reach between 18.7 million tonnes and 19.5 million tonnes, up around 10 percent from levels in 2016, but below the record high of 19.96 million tonnes hit in 2015.
Palm oil prices also track the movements in rival edible oils, as they compete for a share in the global vegetable oils market.
The December soybean oil contract on the Chicago Board of Trade declined up to 1.1 percent, following forecasts of rains across the U.S. Midwest which is expected to aid crops.
In other related oils, September soybean oil on the Dalian Commodity Exchange was down 1.3 percent, while the September palm olein contract dropped 1.9 percent.
Palm oil is biased to retest a resistance at 2,591 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,605 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0517 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2580 -32.00 2580 2592 419
MY PALM OIL SEP7 2553 -31.00 2553 2567 1221
MY PALM OIL OCT7 2542 -31.00 2542 2556 5523
CHINA PALM OLEIN SEP7 5328 -104.00 5300 5418 217540
CHINA SOYOIL SEP7 6066 -82.00 6046 6146 225940
CBOT SOY OIL DEC7 33.88 -0.37 33.7 34.2 7980
INDIA PALM OIL JUL7 478.50 -3.50 478.50 480.5 155
INDIA SOYOIL AUG7 638 -4.25 637.6 639.9 4790
NYMEX CRUDE SEP7 45.79 +0.02 45.58 45.96 32338
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 = 4.2815 ringgit)
($1 = 64.4400 Indian rupees)
($1 = 6.7595 Chinese yuan)
* Palm biased to test resistance at 2,591 rgt/T - Technicals
25/07/2017 (Reuters) - Malaysian palm oil futures on Monday posted their worst session in a week, as it tracked weaker performances in rival oils.
Traders showed bearish sentiments on forecasts of rising output, but are uncertain about how much production will be recorded in the coming months.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 1.2 percent at 2,542 ringgit ($593.72) at the midday break.
Traded volumes stood at 11,359 lots of 25 tonnes each at noon.
"The market fell tracking weaker soybean oil, as well as on concerns over higher production in the coming weeks," said a Kuala Lumpur-based futures trader.
He added that uncertainty over the extent of output gains has resulted in lower traded volumes on Bursa.
Palm oil production in Malaysia, the second-largest producer after Indonesia, is seen rising in the-second half of the year, in line with seasonal trends and is expected to peak in October.
Production for 2017 is estimated to reach between 18.7 million tonnes and 19.5 million tonnes, up around 10 percent from levels in 2016, but below the record high of 19.96 million tonnes hit in 2015.
Palm oil prices also track the movements in rival edible oils, as they compete for a share in the global vegetable oils market.
The December soybean oil contract on the Chicago Board of Trade declined up to 1.1 percent, following forecasts of rains across the U.S. Midwest which is expected to aid crops.
In other related oils, September soybean oil on the Dalian Commodity Exchange was down 1.3 percent, while the September palm olein contract dropped 1.9 percent.
Palm oil is biased to retest a resistance at 2,591 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,605 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0517 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2580 -32.00 2580 2592 419
MY PALM OIL SEP7 2553 -31.00 2553 2567 1221
MY PALM OIL OCT7 2542 -31.00 2542 2556 5523
CHINA PALM OLEIN SEP7 5328 -104.00 5300 5418 217540
CHINA SOYOIL SEP7 6066 -82.00 6046 6146 225940
CBOT SOY OIL DEC7 33.88 -0.37 33.7 34.2 7980
INDIA PALM OIL JUL7 478.50 -3.50 478.50 480.5 155
INDIA SOYOIL AUG7 638 -4.25 637.6 639.9 4790
NYMEX CRUDE SEP7 45.79 +0.02 45.58 45.96 32338
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 = 4.2815 ringgit)
($1 = 64.4400 Indian rupees)
($1 = 6.7595 Chinese yuan)