MARKET DEVELOPMENT
VEGOILS-Palm Sheds Early Gains Tracking Overnight Losses in Rival Soyoil
VEGOILS-Palm Sheds Early Gains Tracking Overnight Losses in Rival Soyoil
* Palm in line for third decline in four sessions
* Weaker ringgit could reduce selling pressure - trader
28/09/2017 (Reuters) - Malaysian palm oil futures erased earlier gains to edge lower on Wednesday, tracking overnight losses in soyoil on the Chicago Board of Trade.
Losses in the ringgit, the currency of trade for palm oil, might curb declines in the tropical oil, said a trader.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,739 ringgit ($649.44) a tonne at the midday break, on track for its third drop in four sessions.
Traded volumes stood at 22,474 lots of 25 tonnes each at noon.
Palm oil prices fell on Wednesday morning tracking overnight losses in CBOT soyoil, said two futures traders from Kuala Lumpur.
"Weakness in the local currency could, however, cushion the selling pressure," added one trader.
A weaker ringgit usually makes palm oil cheaper for holders of foreign currencies. Earlier in the session, the currency slipped as much as 0.3 percent to 4.2190 per dollar, its weakest in near three weeks.
The December soybean oil contract on the Chicago Board of Trade gained up to 0.4 percent, after closing down 1.6 percent in its previous session on better-than-expected yield reports from the U.S. midwest.
Palm oil prices slided after the U.S. Environmental Protection Agency said it was seeking comments on a proposal to reduce biodiesel blending requirements into the domestic fuel supply. Soyoil is the primary feedstock for soy-based biodiesel fuel.
In other related oils, the January soybean oil contract on the Dalian Commodity Exchange fell as much as 0.6 percent, while the January palm olein contract climbed up to 0.5 percent.
Palm oil prices are impacted by the performances of related edible oils as they compete for a share of the global vegetable oils market.
Palm, soy and crude oil prices at 0500 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2742 -13.00 2730 2742 31
MY PALM OIL NOV7 2736 -12.00 2715 2736 1915
MY PALM OIL DEC7 2739 -10.00 2718 2740 9232
CHINA PALM OLEIN JAN8 5628 +28.00 5612 5672 325238
CHINA SOYOIL JAN8 6154 -34.00 6140 6212 268552
CBOT SOY OIL DEC7 33.56 +0.11 33.4 33.57 8927
INDIA PALM OIL SEP7 547.60 +0.10 547.00 548 8
INDIA SOYOIL OCT7 674.9 -2.25 673 676 2420
NYMEX CRUDE NOV7 52.15 +0.27 52.03 52.18 15188
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 = 4.2175 ringgit)
($1 = 65.5200 Indian rupees)
($1 = 6.6300 Chinese yuan)
* Weaker ringgit could reduce selling pressure - trader
28/09/2017 (Reuters) - Malaysian palm oil futures erased earlier gains to edge lower on Wednesday, tracking overnight losses in soyoil on the Chicago Board of Trade.
Losses in the ringgit, the currency of trade for palm oil, might curb declines in the tropical oil, said a trader.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,739 ringgit ($649.44) a tonne at the midday break, on track for its third drop in four sessions.
Traded volumes stood at 22,474 lots of 25 tonnes each at noon.
Palm oil prices fell on Wednesday morning tracking overnight losses in CBOT soyoil, said two futures traders from Kuala Lumpur.
"Weakness in the local currency could, however, cushion the selling pressure," added one trader.
A weaker ringgit usually makes palm oil cheaper for holders of foreign currencies. Earlier in the session, the currency slipped as much as 0.3 percent to 4.2190 per dollar, its weakest in near three weeks.
The December soybean oil contract on the Chicago Board of Trade gained up to 0.4 percent, after closing down 1.6 percent in its previous session on better-than-expected yield reports from the U.S. midwest.
Palm oil prices slided after the U.S. Environmental Protection Agency said it was seeking comments on a proposal to reduce biodiesel blending requirements into the domestic fuel supply. Soyoil is the primary feedstock for soy-based biodiesel fuel.
In other related oils, the January soybean oil contract on the Dalian Commodity Exchange fell as much as 0.6 percent, while the January palm olein contract climbed up to 0.5 percent.
Palm oil prices are impacted by the performances of related edible oils as they compete for a share of the global vegetable oils market.
Palm, soy and crude oil prices at 0500 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2742 -13.00 2730 2742 31
MY PALM OIL NOV7 2736 -12.00 2715 2736 1915
MY PALM OIL DEC7 2739 -10.00 2718 2740 9232
CHINA PALM OLEIN JAN8 5628 +28.00 5612 5672 325238
CHINA SOYOIL JAN8 6154 -34.00 6140 6212 268552
CBOT SOY OIL DEC7 33.56 +0.11 33.4 33.57 8927
INDIA PALM OIL SEP7 547.60 +0.10 547.00 548 8
INDIA SOYOIL OCT7 674.9 -2.25 673 676 2420
NYMEX CRUDE NOV7 52.15 +0.27 52.03 52.18 15188
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 = 4.2175 ringgit)
($1 = 65.5200 Indian rupees)
($1 = 6.6300 Chinese yuan)