MARKET DEVELOPMENT
VEGOILS-Palm Hits Over 1-Mth Low on Softer Demand, Weaker Soyoil
VEGOILS-Palm Hits Over 1-Mth Low on Softer Demand, Weaker Soyoil
* Palm in line for second session of decline
* Stronger ringgit also weighs on mkt - trader
26/09/2017 (Reuters) - Malaysian palm oil futures fell 1.5 percent to their lowest in more than a month on Monday, tracking weakness in soyoil on the Chicago Board of Trade (CBOT) and as demand from top consumers China and India weakened.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was down 1.3 percent at 2,701 ringgit ($644.32) a tonne at the midday break, after declining as much as 1.5 percent to its lowest since Aug. 21 at 2,695 ringgit.
The contract posted its biggest intraday percentage drop in one week, and was headed for a second straight session of decline.
Traded volumes stood at 16,551 lots of 25 tonnes each at noon.
"Demand is tapering off... buyers are now fully covered. It doesn't look like there will be any more heavy demand from the two prominent buyers China and India," said a trader from Kuala Lumpur, adding that he expected demand to remain soft until the end of the year.
China and India stocked up this month for mid-Autumn and Diwali festivities in October, which typically see higher consumption of the tropical oil.
Malaysia's palm oil shipments during Sept. 1-25 rose 16.1 percent from a month earlier, according to cargo surveyor data from Intertek Testing Services (ITS).
Shipments during Sept. 1-20 rose 25.4 percent from a month ago, ITS data showed.
Another trader said palm is likely to drop further due to continued weakness in CBOT soyoil and gains in the local currency.
The ringgit, the currency of trade for palm oil, was up 0.1 percent at 4.1920 per dollar around Monday noon.
A stronger ringgit typically makes palm oil more expensive for foreign currency holders.
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 fell 0.6 percent lower on Monday, while the January soybean oil contract on the Dalian Commodity Exchange dropped 1.1 percent.
In other related oils, the January palm olein contract declined 0.9 percent.
Palm, soy and crude oil prices at 0614 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2711 -37.00 2708 2728 289
MY PALM OIL NOV7 2695 -40.00 2691 2711 1721
MY PALM OIL DEC7 2701 -36.00 2695 2715 8084
CHINA PALM OLEIN JAN8 5582 -54.00 5572 5692 475496
CHINA SOYOIL JAN8 6172 -68.00 6158 6268 387046
CBOT SOY OIL DEC7 34.04 -0.19 34.03 34.22 7197
INDIA PALM OIL SEP7 541.60 -3.30 541.20 542.4 197
INDIA SOYOIL OCT7 676.25 -5.35 676.1 678.5 9970
NYMEX CRUDE NOV7 50.57 -0.09 50.47 50.72 18330
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 = 4.1920 ringgit)
($1 = 64.8200 Indian rupees)
($1 = 6.6043 Chinese yuan)
* Stronger ringgit also weighs on mkt - trader
26/09/2017 (Reuters) - Malaysian palm oil futures fell 1.5 percent to their lowest in more than a month on Monday, tracking weakness in soyoil on the Chicago Board of Trade (CBOT) and as demand from top consumers China and India weakened.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was down 1.3 percent at 2,701 ringgit ($644.32) a tonne at the midday break, after declining as much as 1.5 percent to its lowest since Aug. 21 at 2,695 ringgit.
The contract posted its biggest intraday percentage drop in one week, and was headed for a second straight session of decline.
Traded volumes stood at 16,551 lots of 25 tonnes each at noon.
"Demand is tapering off... buyers are now fully covered. It doesn't look like there will be any more heavy demand from the two prominent buyers China and India," said a trader from Kuala Lumpur, adding that he expected demand to remain soft until the end of the year.
China and India stocked up this month for mid-Autumn and Diwali festivities in October, which typically see higher consumption of the tropical oil.
Malaysia's palm oil shipments during Sept. 1-25 rose 16.1 percent from a month earlier, according to cargo surveyor data from Intertek Testing Services (ITS).
Shipments during Sept. 1-20 rose 25.4 percent from a month ago, ITS data showed.
Another trader said palm is likely to drop further due to continued weakness in CBOT soyoil and gains in the local currency.
The ringgit, the currency of trade for palm oil, was up 0.1 percent at 4.1920 per dollar around Monday noon.
A stronger ringgit typically makes palm oil more expensive for foreign currency holders.
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 fell 0.6 percent lower on Monday, while the January soybean oil contract on the Dalian Commodity Exchange dropped 1.1 percent.
In other related oils, the January palm olein contract declined 0.9 percent.
Palm, soy and crude oil prices at 0614 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2711 -37.00 2708 2728 289
MY PALM OIL NOV7 2695 -40.00 2691 2711 1721
MY PALM OIL DEC7 2701 -36.00 2695 2715 8084
CHINA PALM OLEIN JAN8 5582 -54.00 5572 5692 475496
CHINA SOYOIL JAN8 6172 -68.00 6158 6268 387046
CBOT SOY OIL DEC7 34.04 -0.19 34.03 34.22 7197
INDIA PALM OIL SEP7 541.60 -3.30 541.20 542.4 197
INDIA SOYOIL OCT7 676.25 -5.35 676.1 678.5 9970
NYMEX CRUDE NOV7 50.57 -0.09 50.47 50.72 18330
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 = 4.1920 ringgit)
($1 = 64.8200 Indian rupees)
($1 = 6.6043 Chinese yuan)