MARKET DEVELOPMENT
VEGOILS-Palm Oil Ends Higher After Dropping To 4-month Low
VEGOILS-Palm Oil Ends Higher After Dropping To 4-month Low
19/04/2013 (Reuters) - Malaysian palm oil futures edged up on Thursday after a drop to a four-month low earlier in the session lured back buyers, though gains were capped by persistent worries about the health of the global economy.
Recent data from the United States and China -- the world's top two economies -- that fell short of expectations and raised concerns over slowing global growth have triggered this week' sell-off across markets from crude oil to gold.
Palm oil futures have come under pressure as investors took cues from these factors, with the benchmark contract dropping below 2,300 ringgit on Monday for the first time this year.
"The sentiment in overall commodities markets remains weak, especially as crude oil prices posted six straight sessions of loss while gold prices still struggle to recover," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange edged up 1.5 percent to close at 2,309 ringgit ($761) per tonne. Prices fell to as low as 2,265 ringgit, a level last seen on Dec. 14.
Total traded volumes stood at 38,072 lots of 25 tonnes each, higher than the average 35,000 lots.
Technical analysis showed palm oil is expected to drop to 2,249 ringgit, as it has broken a support at 2,289 ringgit, Reuters market analyst Wang Tao said.
Palm oil traders are now waiting for export numbers as stocks of the edible oil could ease further on higher shipments and weak production. Inventory levels fell to 2.17 million tonnes in March, the lowest in seven months.
Cargo surveyor Intertek Testing Services will release Malaysia's April 1-20 export data on Saturday while another surveyor, Societe Generale de Surveillance, is expected to do the same on Monday.
In other markets, Brent crude oil jumped by more than a dollar to $99 a barrel on Thursday, snapping a six-session losing streak, with dealers saying it looked oversold after losing 10 percent this month.
In other vegetable oil markets, U.S. soyoil for May delivery edged up 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange lost 1 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2293 +39.00 2249 2298 463
MY PALM OIL JUN3 2305 +34.00 2260 2309 4295
MY PALM OIL JUL3 2309 +34.00 2265 2315 18468
CHINA PALM OLEIN SEP3 6086 -58.00 6026 6114 482780
CHINA SOYOIL SEP3 7584 -76.00 7542 7642 786110
CBOT SOY OIL MAY3 49.53 +0.14 49.10 49.58 4259
NYMEX CRUDE MAY3 87.60 +0.92 85.61 87.80 26254
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
Crude in U.S. dollars per barrel
($1=3.032 ringgit)
Recent data from the United States and China -- the world's top two economies -- that fell short of expectations and raised concerns over slowing global growth have triggered this week' sell-off across markets from crude oil to gold.
Palm oil futures have come under pressure as investors took cues from these factors, with the benchmark contract dropping below 2,300 ringgit on Monday for the first time this year.
"The sentiment in overall commodities markets remains weak, especially as crude oil prices posted six straight sessions of loss while gold prices still struggle to recover," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange edged up 1.5 percent to close at 2,309 ringgit ($761) per tonne. Prices fell to as low as 2,265 ringgit, a level last seen on Dec. 14.
Total traded volumes stood at 38,072 lots of 25 tonnes each, higher than the average 35,000 lots.
Technical analysis showed palm oil is expected to drop to 2,249 ringgit, as it has broken a support at 2,289 ringgit, Reuters market analyst Wang Tao said.
Palm oil traders are now waiting for export numbers as stocks of the edible oil could ease further on higher shipments and weak production. Inventory levels fell to 2.17 million tonnes in March, the lowest in seven months.
Cargo surveyor Intertek Testing Services will release Malaysia's April 1-20 export data on Saturday while another surveyor, Societe Generale de Surveillance, is expected to do the same on Monday.
In other markets, Brent crude oil jumped by more than a dollar to $99 a barrel on Thursday, snapping a six-session losing streak, with dealers saying it looked oversold after losing 10 percent this month.
In other vegetable oil markets, U.S. soyoil for May delivery edged up 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange lost 1 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2293 +39.00 2249 2298 463
MY PALM OIL JUN3 2305 +34.00 2260 2309 4295
MY PALM OIL JUL3 2309 +34.00 2265 2315 18468
CHINA PALM OLEIN SEP3 6086 -58.00 6026 6114 482780
CHINA SOYOIL SEP3 7584 -76.00 7542 7642 786110
CBOT SOY OIL MAY3 49.53 +0.14 49.10 49.58 4259
NYMEX CRUDE MAY3 87.60 +0.92 85.61 87.80 26254
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
Crude in U.S. dollars per barrel
($1=3.032 ringgit)