MARKET DEVELOPMENT
VEGOILS-Palm Slips From 5-Month High on U.S. Decision Over Biodiesel Duties
VEGOILS-Palm Slips From 5-Month High on U.S. Decision Over Biodiesel Duties
* Palm in line to snap four consecutive sessions of gains
* Market also down on correction - Trader
* Palm may stabilize in 2,721-2,730 ringgit/tonne - Technicals
24/08/2017 (Reuters) - Malaysian palm oil futures were poised to snap their winning streak on Wednesday, slipping from a five-month high hit in the previous session, as markets reacted to the U.S. decision to impose duties on biodiesel imports from Indonesia and Argentina.
The U.S. Commerce Department on Tuesday made a preliminary finding that imports of biodiesel from Indonesia and Argentina were subsidized, a U.S. industry lobby group had said.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 0.7 percent at 2,717 ringgit ($634.66) at the midday break.
Traded volumes stood at 35,584 lots of 25 tonnes each at noon.
"The market has been overbought... the fact that the rally failed to boost the market higher suggests that buyers are exhausted," said a futures trader from Kuala Lumpur.
"News that the United States will impose countervailing duties on biodiesel imported from Indonesia and Argentina is negative for palm," said the trader, as palm oil is often used as feedstock in producing biodiesel.
Palm oil may stabilize in a support zone of 2,721-2,730 ringgit per tonne, and then resume its uptrend, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, the October soybean oil contract on the Chicago Board of Trade rose as much as 2.8 percent, while the January soybean oil on the Dalian Commodity Exchange gained up to 1.5 percent.
The January palm olein contract on Dalian climbed as much as 0.5 percent.
Palm oil prices are impacted by the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0437 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP7 2707 -22.00 2707 2722 233
MY PALM OIL OCT7 2708 -21.00 2706 2734 1264
MY PALM OIL NOV7 2717 -20.00 2715 2744 17054
CHINA PALM OLEIN JAN8 5534 +26.00 5516 5594 584798
CHINA SOYOIL JAN8 6412 +74.00 6332 6434 459844
CBOT SOY OIL DEC7 35.03 +0.61 35 35.37 29427
INDIA PALM OIL AUG7 515.20 -0.10 515.20 517.5 120
INDIA SOYOIL SEP7 0 +0.00 0 0 0
NYMEX CRUDE OCT7 47.73 -0.10 47.61 47.76 16845
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 = 4.2810 ringgit)
($1 = 64.0900 Indian rupees)
($1 = 6.6601 Chinese yuan)
* Market also down on correction - Trader
* Palm may stabilize in 2,721-2,730 ringgit/tonne - Technicals
24/08/2017 (Reuters) - Malaysian palm oil futures were poised to snap their winning streak on Wednesday, slipping from a five-month high hit in the previous session, as markets reacted to the U.S. decision to impose duties on biodiesel imports from Indonesia and Argentina.
The U.S. Commerce Department on Tuesday made a preliminary finding that imports of biodiesel from Indonesia and Argentina were subsidized, a U.S. industry lobby group had said.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 0.7 percent at 2,717 ringgit ($634.66) at the midday break.
Traded volumes stood at 35,584 lots of 25 tonnes each at noon.
"The market has been overbought... the fact that the rally failed to boost the market higher suggests that buyers are exhausted," said a futures trader from Kuala Lumpur.
"News that the United States will impose countervailing duties on biodiesel imported from Indonesia and Argentina is negative for palm," said the trader, as palm oil is often used as feedstock in producing biodiesel.
Palm oil may stabilize in a support zone of 2,721-2,730 ringgit per tonne, and then resume its uptrend, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, the October soybean oil contract on the Chicago Board of Trade rose as much as 2.8 percent, while the January soybean oil on the Dalian Commodity Exchange gained up to 1.5 percent.
The January palm olein contract on Dalian climbed as much as 0.5 percent.
Palm oil prices are impacted by the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0437 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP7 2707 -22.00 2707 2722 233
MY PALM OIL OCT7 2708 -21.00 2706 2734 1264
MY PALM OIL NOV7 2717 -20.00 2715 2744 17054
CHINA PALM OLEIN JAN8 5534 +26.00 5516 5594 584798
CHINA SOYOIL JAN8 6412 +74.00 6332 6434 459844
CBOT SOY OIL DEC7 35.03 +0.61 35 35.37 29427
INDIA PALM OIL AUG7 515.20 -0.10 515.20 517.5 120
INDIA SOYOIL SEP7 0 +0.00 0 0 0
NYMEX CRUDE OCT7 47.73 -0.10 47.61 47.76 16845
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 = 4.2810 ringgit)
($1 = 64.0900 Indian rupees)
($1 = 6.6601 Chinese yuan)