MARKET DEVELOPMENT
VEGOILS-Palm Hits Near 2-Week Top on Stocks Draw Hopes; Output Eyed
VEGOILS-Palm Hits Near 2-Week Top on Stocks Draw Hopes; Output Eyed
10/07/2013 (Reuters) - Malaysian palm oil futures rose to a near two-week high on Tuesday on hopes a key industry report could show a drop in stocks of the tropical oil, although concerns about rising output in the world's second largest producer capped gains.
Industry regulator the Malaysian Palm Oil Board (MPOB) is due to release its June end-stocks and production report on Wednesday. A Reuters poll of five plantation companies pegged inventory levels at 1.74 million tonnes, down from 1.82 million
tonnes a month ago and the lowest in a year.
But the poll also showed June production could rise by 6 percent from May, the biggest increase so far this year, signalling a higher production cycle that is typically seen in the second half of the year may have started.
"All eyes are on MPOB at the moment and that's why we see cautious trading before the data," said a trader with a foreign commodities brokerage. "We are probably going to see higher production, so that could be limiting the price upside."
At market close, the benchmark September contract on the Bursa Malaysia Derivatives Exchange edged up almost 1 percent to 2,399 ringgit ($753) per tonne, just below its
intraday high at 2,400 ringgit, a level last seen on June 26.
Total traded volumes stood at 32,508 lots of 25 tonnes each, below the average 35,000 lots. Prices traded in a range of 2,375 to 2,400 ringgit.
Technicals showed a bearish target at 2,345 ringgit per tonne remains unchanged for Malaysian palm oil, as it has completed a rebound from the July 2 low of 2,324 ringgit, Reuters market analyst Wang Tao said.
Market participants are waiting for cargo surveyors' export data for July 1-10, also due on Wednesday, which could show higher shipments on last-minute buying ahead of the Muslim holy month of Ramadan.
In other markets, Brent crude fell to around $107 a barrel as worries about supply disruptions from the Middle East eased, though investors were wary that further negative headlines from Egypt could lead to more volatility.
In vegetable oil markets, U.S. soyoil for December gained 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange
was almost flat.
Palm, soy and crude oil prices at 1002 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL3 2415 +46.00 2390 2415 8
MY PALM OIL AUG3 2407 +29.00 2380 2409 2270
MY PALM OIL SEP3 2399 +23.00 2375 2400 17509
CHINA PALM OLEIN JAN4 5872 -16.00 5852 5892 287772
CHINA SOYOIL JAN4 7272 -2.00 7252 7296 578662
CBOT SOY OIL DEC3 46.05 +0.16 45.77 46.12 4652
NYMEX CRUDE AUG3 102.95 -0.19 102.71 103.40 18218
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=3.185 ringgit)
Industry regulator the Malaysian Palm Oil Board (MPOB) is due to release its June end-stocks and production report on Wednesday. A Reuters poll of five plantation companies pegged inventory levels at 1.74 million tonnes, down from 1.82 million
tonnes a month ago and the lowest in a year.
But the poll also showed June production could rise by 6 percent from May, the biggest increase so far this year, signalling a higher production cycle that is typically seen in the second half of the year may have started.
"All eyes are on MPOB at the moment and that's why we see cautious trading before the data," said a trader with a foreign commodities brokerage. "We are probably going to see higher production, so that could be limiting the price upside."
At market close, the benchmark September contract on the Bursa Malaysia Derivatives Exchange edged up almost 1 percent to 2,399 ringgit ($753) per tonne, just below its
intraday high at 2,400 ringgit, a level last seen on June 26.
Total traded volumes stood at 32,508 lots of 25 tonnes each, below the average 35,000 lots. Prices traded in a range of 2,375 to 2,400 ringgit.
Technicals showed a bearish target at 2,345 ringgit per tonne remains unchanged for Malaysian palm oil, as it has completed a rebound from the July 2 low of 2,324 ringgit, Reuters market analyst Wang Tao said.
Market participants are waiting for cargo surveyors' export data for July 1-10, also due on Wednesday, which could show higher shipments on last-minute buying ahead of the Muslim holy month of Ramadan.
In other markets, Brent crude fell to around $107 a barrel as worries about supply disruptions from the Middle East eased, though investors were wary that further negative headlines from Egypt could lead to more volatility.
In vegetable oil markets, U.S. soyoil for December gained 0.4 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange
was almost flat.
Palm, soy and crude oil prices at 1002 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL3 2415 +46.00 2390 2415 8
MY PALM OIL AUG3 2407 +29.00 2380 2409 2270
MY PALM OIL SEP3 2399 +23.00 2375 2400 17509
CHINA PALM OLEIN JAN4 5872 -16.00 5852 5892 287772
CHINA SOYOIL JAN4 7272 -2.00 7252 7296 578662
CBOT SOY OIL DEC3 46.05 +0.16 45.77 46.12 4652
NYMEX CRUDE AUG3 102.95 -0.19 102.71 103.40 18218
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=3.185 ringgit)