MARKET DEVELOPMENT
VEGOILS-Palm Up on Overnight Soyoil Strength, Stronger Exports
VEGOILS-Palm Up on Overnight Soyoil Strength, Stronger Exports
* Palm in line for first rise in five sessions
* Gains seen short-lived - trader
21/09/2017 (Reuters) - Malaysian palm oil futures were set for the first gain in five sessions in early trade on Wednesday, supported by rising export demand and strength in soyoil overnight on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to 2,780 ringgit ($663.25) a tonne at the midday break.
The rise followed four straight days of declines as palm tracked weakness in related edible oils and was also pulled lower by bearish price outlooks at an industry conference last week.
Traded volumes stood at 27,555 lots of 25 tonnes each at noon.
"The market is higher on better soyoil, closing (higher) last night," said a futures trader from Kuala Lumpur, referring to CBOT soyoil.
He added that strong export data from cargo surveyor Intertek Testing Services (ITS) was also supporting the market, but the gains would likely be short-lived as expectations of stronger exports were already priced in.
"The market needs to break above 2,800 ringgit to continue its bullish rally. Otherwise it will come lower to 2,740-50 ringgit," said the trader.
Palm oil shipments from Malaysia, the world's second-largest producer after Indonesia, rose 25.4 percent during Sept. 1-20 versus the corresponding period the previous month, according to ITS data on Wednesday morning.
Demand for the tropical oil is seen rising for the full month of September, as key buyers China and India stock up ahead of the Mid-Autumn festival and Diwali respectively, which lead to higher usage of palm oil.
Palm oil prices are also affected by movements in related edible oils including soy, as they compete for a share of the global vegetable oils market.
The October soybean oil contract on the Chicago Board of Trade posted its first gain in a week on Tuesday, but was last down 0.1 percent on Wednesday.
In other related oils, the January soybean oil contract on the Dalian Commodity Exchange dipped 0.1 percent, while the January palm olein contract fell 0.4 percent.
Palm, soy and crude oil prices at 0505 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2795 +10.00 2784 2796 114
MY PALM OIL NOV7 2782 +10.00 2770 2790 3860
MY PALM OIL DEC7 2780 +13.00 2769 2787 11256
CHINA PALM OLEIN JAN8 5728 -24.00 5686 5754 348386
CHINA SOYOIL JAN8 6338 -4.00 6294 6350 250628
CBOT SOY OIL DEC7 34.73 -0.05 34.69 34.96 3643
INDIA PALM OIL SEP7 543.10 +1.60 541.70 543.3 171
INDIA SOYOIL SEP7 667 +0.55 666.5 667 300
NYMEX CRUDE OCT7 49.76 +0.28 49.76 49.89 1455
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 = 4.1915 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.5660 Chinese yuan)
* Gains seen short-lived - trader
21/09/2017 (Reuters) - Malaysian palm oil futures were set for the first gain in five sessions in early trade on Wednesday, supported by rising export demand and strength in soyoil overnight on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to 2,780 ringgit ($663.25) a tonne at the midday break.
The rise followed four straight days of declines as palm tracked weakness in related edible oils and was also pulled lower by bearish price outlooks at an industry conference last week.
Traded volumes stood at 27,555 lots of 25 tonnes each at noon.
"The market is higher on better soyoil, closing (higher) last night," said a futures trader from Kuala Lumpur, referring to CBOT soyoil.
He added that strong export data from cargo surveyor Intertek Testing Services (ITS) was also supporting the market, but the gains would likely be short-lived as expectations of stronger exports were already priced in.
"The market needs to break above 2,800 ringgit to continue its bullish rally. Otherwise it will come lower to 2,740-50 ringgit," said the trader.
Palm oil shipments from Malaysia, the world's second-largest producer after Indonesia, rose 25.4 percent during Sept. 1-20 versus the corresponding period the previous month, according to ITS data on Wednesday morning.
Demand for the tropical oil is seen rising for the full month of September, as key buyers China and India stock up ahead of the Mid-Autumn festival and Diwali respectively, which lead to higher usage of palm oil.
Palm oil prices are also affected by movements in related edible oils including soy, as they compete for a share of the global vegetable oils market.
The October soybean oil contract on the Chicago Board of Trade posted its first gain in a week on Tuesday, but was last down 0.1 percent on Wednesday.
In other related oils, the January soybean oil contract on the Dalian Commodity Exchange dipped 0.1 percent, while the January palm olein contract fell 0.4 percent.
Palm, soy and crude oil prices at 0505 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2795 +10.00 2784 2796 114
MY PALM OIL NOV7 2782 +10.00 2770 2790 3860
MY PALM OIL DEC7 2780 +13.00 2769 2787 11256
CHINA PALM OLEIN JAN8 5728 -24.00 5686 5754 348386
CHINA SOYOIL JAN8 6338 -4.00 6294 6350 250628
CBOT SOY OIL DEC7 34.73 -0.05 34.69 34.96 3643
INDIA PALM OIL SEP7 543.10 +1.60 541.70 543.3 171
INDIA SOYOIL SEP7 667 +0.55 666.5 667 300
NYMEX CRUDE OCT7 49.76 +0.28 49.76 49.89 1455
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 = 4.1915 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.5660 Chinese yuan)