MARKET DEVELOPMENT
VEGOILS-Palm Almost Flat, Weak China Data Offsets Stocks Hopes
VEGOILS-Palm Almost Flat, Weak China Data Offsets Stocks Hopes
04/06/2013 (Reuters) - Malaysian palm oil futures ended almost flat on Monday, as expectations of stagnant production to ease stocks further were offset by weak data from major consumer China.
The HSBC/Markit Purchasing Managers' Index (PMI) for China fell to 49.2 in May, shrinking for the first time in seven months and reflecting softer domestic and external demand in the world's second-largest buyer of the edible oil.
But investors remain optimistic that Malaysia's palm oil stocks will inch lower on weak production and a demand recovery ahead of the Muslim fasting month of Ramadan that starts in July, when communal feasting typically drives up consumption.
"External markets are not doing so well, the sentiment on global economy remains weak," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But on the palm side we still see some supportive factors. There may be a supply squeeze as output typically picks up in April or May but we are not seeing that this year."
At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange was almost flat at 2,396 ($773) ringgit per tonne, after trading in a range of 2,388 ringgit to 2,411 ringgit.
Total traded volumes were thin, at 22,322 lots of 25 tonnes each, compared with the usual 35,000 lots.
Technicals showed palm oil is expected to break a resistance at 2,419 ringgit per tonne and rise further towards 2,446 ringgit, said Reuters market analyst Wang Tao.
Exports of Malaysian palm oil products fell over 3 percent in May compared to a month ago, cargo surveyor data showed, as shipments to Europe and China slowed. Demand from India and Pakistan, however, rose as buyers stocked up ahead of Ramadan.
In other markets, Brent crude oil on Monday dipped below $100 a barrel for the first time in a month on demand worries after Chinese factory data pointed to slowing momentum in the world's second-biggest oil consumer.
In vegetable oil markets, U.S. soyoil for July delivery gained 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange edged up 0.3 percent.
Palm, soy and crude oil prices at 1010 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2360 +0.00 2352 2360 14
MY PALM OIL JUL3 2391 +0.00 2383 2403 4480
MY PALM OIL AUG3 2396 -1.00 2388 2411 11226
CHINA PALM OLEIN SEP3 6192 +40.00 6158 6208 316442
CHINA SOYOIL SEP3 7522 +22.00 7498 7560 493640
CBOT SOY OIL JUL3 48.56 +0.18 48.25 48.67 5328
NYMEX CRUDE JUL3 92.04 +0.07 91.26 92.09 25610
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=3.098 ringgit)
The HSBC/Markit Purchasing Managers' Index (PMI) for China fell to 49.2 in May, shrinking for the first time in seven months and reflecting softer domestic and external demand in the world's second-largest buyer of the edible oil.
But investors remain optimistic that Malaysia's palm oil stocks will inch lower on weak production and a demand recovery ahead of the Muslim fasting month of Ramadan that starts in July, when communal feasting typically drives up consumption.
"External markets are not doing so well, the sentiment on global economy remains weak," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But on the palm side we still see some supportive factors. There may be a supply squeeze as output typically picks up in April or May but we are not seeing that this year."
At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange was almost flat at 2,396 ($773) ringgit per tonne, after trading in a range of 2,388 ringgit to 2,411 ringgit.
Total traded volumes were thin, at 22,322 lots of 25 tonnes each, compared with the usual 35,000 lots.
Technicals showed palm oil is expected to break a resistance at 2,419 ringgit per tonne and rise further towards 2,446 ringgit, said Reuters market analyst Wang Tao.
Exports of Malaysian palm oil products fell over 3 percent in May compared to a month ago, cargo surveyor data showed, as shipments to Europe and China slowed. Demand from India and Pakistan, however, rose as buyers stocked up ahead of Ramadan.
In other markets, Brent crude oil on Monday dipped below $100 a barrel for the first time in a month on demand worries after Chinese factory data pointed to slowing momentum in the world's second-biggest oil consumer.
In vegetable oil markets, U.S. soyoil for July delivery gained 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange edged up 0.3 percent.
Palm, soy and crude oil prices at 1010 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN3 2360 +0.00 2352 2360 14
MY PALM OIL JUL3 2391 +0.00 2383 2403 4480
MY PALM OIL AUG3 2396 -1.00 2388 2411 11226
CHINA PALM OLEIN SEP3 6192 +40.00 6158 6208 316442
CHINA SOYOIL SEP3 7522 +22.00 7498 7560 493640
CBOT SOY OIL JUL3 48.56 +0.18 48.25 48.67 5328
NYMEX CRUDE JUL3 92.04 +0.07 91.26 92.09 25610
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=3.098 ringgit)