MARKET DEVELOPMENT
VEGOILS-Palm Falls Nearly 2 Pct, Tracking Weakness in Related Oils
VEGOILS-Palm Falls Nearly 2 Pct, Tracking Weakness in Related Oils
* Palm falls nearly 2 pct, its sharpest drop in nearly 2 weeks
* Dalian palm olein, CBOT soyoil declines weigh on palm - Trader
29/09/2017 (Reuters) - Malaysian palm oil futures fell sharply in early trade on Thursday, tracking weakness in rival edible oilseeds and set for a second straight day of losses.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 1.8 percent to 2,698 ringgit ($637.83) a tonne at the midday break, its sharpest decline since Sept. 18.
Traded volumes stood at 26,797 lots of 25 tonnes each at noon.
"The heavy drop in China palm olein and weakness in rival oilseed soy dampened market sentiment," said a Kuala Lumpur based futures trader, referring to palm olein on China's Dalian Commodity Exchange and soyoil on the U.S. Chicago Board of Trade.
China soybean oil futures fell over 2 percent on Thursday, reaching their lowest level in three months, following a drop in global prices and amid ongoing pressure from large stocks.
A palm oil trader in Kuala Lumpur said Dalian's palm olein decline could be due to profit-taking ahead of a week-long long holiday. China's announcement on Monday that it would start acutioning soybeans its from state reserves could also weigh on trading sentiment, said traders.
Palm oil prices are affected by the performance of related edible oils such as soy, as they compete for a share of the global vegetable oils market.
Buyers would usually switch to soyoil if its spread with palm oil narrows, as it is perceived to be of better quality.
The December soybean oil contract on the Chicago Board of Trade was down 0.4 percent, while the January soybean oil contract on the Dalian Commodity Exchange fell 1.5 percent.
In other related oils, the January palm olein contract dropped as much as 2 percent.
Palm, soy and crude oil prices at 0437 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2730 -29.00 2707 2730 28
MY PALM OIL NOV7 2696 -48.00 2694 2710 1794
MY PALM OIL DEC7 2698 -49.00 2696 2714 10654
CHINA PALM OLEIN JAN8 5526 -114.00 5450 5642 664468
CHINA SOYOIL JAN8 6080 -94.00 6026 6164 375846
CBOT SOY OIL DEC7 33.1 -0.13 33.03 33.26 5011
INDIA PALM OIL SEP7 547.50 +0.40 546.50 547.7 19
INDIA SOYOIL OCT7 0 +0.00 0 0 0
NYMEX CRUDE NOV7 51.99 -0.15 51.94 52.13 14404
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 = 4.2300 ringgit)
($1 = 65.8100 Indian rupees)
($1 = 6.6565 Chinese yuan)
* Dalian palm olein, CBOT soyoil declines weigh on palm - Trader
29/09/2017 (Reuters) - Malaysian palm oil futures fell sharply in early trade on Thursday, tracking weakness in rival edible oilseeds and set for a second straight day of losses.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 1.8 percent to 2,698 ringgit ($637.83) a tonne at the midday break, its sharpest decline since Sept. 18.
Traded volumes stood at 26,797 lots of 25 tonnes each at noon.
"The heavy drop in China palm olein and weakness in rival oilseed soy dampened market sentiment," said a Kuala Lumpur based futures trader, referring to palm olein on China's Dalian Commodity Exchange and soyoil on the U.S. Chicago Board of Trade.
China soybean oil futures fell over 2 percent on Thursday, reaching their lowest level in three months, following a drop in global prices and amid ongoing pressure from large stocks.
A palm oil trader in Kuala Lumpur said Dalian's palm olein decline could be due to profit-taking ahead of a week-long long holiday. China's announcement on Monday that it would start acutioning soybeans its from state reserves could also weigh on trading sentiment, said traders.
Palm oil prices are affected by the performance of related edible oils such as soy, as they compete for a share of the global vegetable oils market.
Buyers would usually switch to soyoil if its spread with palm oil narrows, as it is perceived to be of better quality.
The December soybean oil contract on the Chicago Board of Trade was down 0.4 percent, while the January soybean oil contract on the Dalian Commodity Exchange fell 1.5 percent.
In other related oils, the January palm olein contract dropped as much as 2 percent.
Palm, soy and crude oil prices at 0437 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2730 -29.00 2707 2730 28
MY PALM OIL NOV7 2696 -48.00 2694 2710 1794
MY PALM OIL DEC7 2698 -49.00 2696 2714 10654
CHINA PALM OLEIN JAN8 5526 -114.00 5450 5642 664468
CHINA SOYOIL JAN8 6080 -94.00 6026 6164 375846
CBOT SOY OIL DEC7 33.1 -0.13 33.03 33.26 5011
INDIA PALM OIL SEP7 547.50 +0.40 546.50 547.7 19
INDIA SOYOIL OCT7 0 +0.00 0 0 0
NYMEX CRUDE NOV7 51.99 -0.15 51.94 52.13 14404
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 = 4.2300 ringgit)
($1 = 65.8100 Indian rupees)
($1 = 6.6565 Chinese yuan)