MARKET DEVELOPMENT
VEGOILS-Palm Drops To 3-Week Low, Weak Soy Markets Drag
VEGOILS-Palm Drops To 3-Week Low, Weak Soy Markets Drag
14/11/2013 (Reuters) - Malaysian palm oil futures dropped to their lowest in more than three weeks on Friday, stretching losses into a fifth straight session, as weakness in competing soy markets stoked worries of a shift in demand from the tropical oil.
The U.S. soyoil contract for January slipped 0.9 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange plunged 2.5 percent.
"Palm is down today on the back of weak China and U.S. soy markets," said a trader with a foreign commodities brokerage.
"But the market is still supported at the 2,580 ringgit level."
Prospects of smaller supplies from Malaysia after monsoon floods in several palm-growing areas dented harvesting in the world's No.2 producer have helped keep a floor under prices.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 2 percent to 2,561 ringgit ($793) per tonne by Friday's close.
Total traded volume stood at 31,861 lots of 25 tonnes, slightly below the average 35,000 lots.
Softer demand for palm oil, typical towards the year-end as palm solidifies in winter, have pressured palm prices this to post a weekly drop of 4.1 percent, the first in five weeks.
Data from cargo surveyors showed that Malaysian palm oil exports fell by as much as 26 percent for the Dec. 1-10 period compared to a month ago, as buyers from top buyers India, China and Europe cut back purchases.
Market players will be watching for export data for the first half of December, to be released by cargo surveyors on Monday, for more trading cues.
U.S. soybean futures dropped for a second session on speculation China may start to cancel some U.S. cargoes, while an expected bumper South American crop fuelled concerns that global oilseed supply may overwhelm demand next year.
In other markets, Brent crude held above $108 a barrel as traders eyed a restart of ports in eastern Libya and a possible scaling back of the U.S. Federal Reserve's stimulus.
Palm, soy and crude oil prices at 1010 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC3 0 +0.00 0 0 0
MY PALM OIL JAN4 2542 -56.00 2537 2585 1634
MY PALM OIL FEB4 2561 -52.00 2558 2606 15895
CHINA PALM OLEIN MAY4 6058 -180.00 6038 6180 964248
CHINA SOYOIL MAY4 7044 -182.00 7040 7170 861400
CBOT SOY OIL JAN4 39.64 -0.35 39.62 40.06 7589
NYMEX CRUDE JAN4 97.08 -0.42 96.93 97.62 12056
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=3.23 Malaysian ringgit)
The U.S. soyoil contract for January slipped 0.9 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange plunged 2.5 percent.
"Palm is down today on the back of weak China and U.S. soy markets," said a trader with a foreign commodities brokerage.
"But the market is still supported at the 2,580 ringgit level."
Prospects of smaller supplies from Malaysia after monsoon floods in several palm-growing areas dented harvesting in the world's No.2 producer have helped keep a floor under prices.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 2 percent to 2,561 ringgit ($793) per tonne by Friday's close.
Total traded volume stood at 31,861 lots of 25 tonnes, slightly below the average 35,000 lots.
Softer demand for palm oil, typical towards the year-end as palm solidifies in winter, have pressured palm prices this to post a weekly drop of 4.1 percent, the first in five weeks.
Data from cargo surveyors showed that Malaysian palm oil exports fell by as much as 26 percent for the Dec. 1-10 period compared to a month ago, as buyers from top buyers India, China and Europe cut back purchases.
Market players will be watching for export data for the first half of December, to be released by cargo surveyors on Monday, for more trading cues.
U.S. soybean futures dropped for a second session on speculation China may start to cancel some U.S. cargoes, while an expected bumper South American crop fuelled concerns that global oilseed supply may overwhelm demand next year.
In other markets, Brent crude held above $108 a barrel as traders eyed a restart of ports in eastern Libya and a possible scaling back of the U.S. Federal Reserve's stimulus.
Palm, soy and crude oil prices at 1010 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC3 0 +0.00 0 0 0
MY PALM OIL JAN4 2542 -56.00 2537 2585 1634
MY PALM OIL FEB4 2561 -52.00 2558 2606 15895
CHINA PALM OLEIN MAY4 6058 -180.00 6038 6180 964248
CHINA SOYOIL MAY4 7044 -182.00 7040 7170 861400
CBOT SOY OIL JAN4 39.64 -0.35 39.62 40.06 7589
NYMEX CRUDE JAN4 97.08 -0.42 96.93 97.62 12056
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=3.23 Malaysian ringgit)