MARKET DEVELOPMENT
VEGOILS-Palm Oil Ends Little Changed After Hitting 2-Wk High
VEGOILS-Palm Oil Ends Little Changed After Hitting 2-Wk High
28/12/2013 (Reuters) - Malaysian palm oil futures recouped early losses to hit a two-week high before ending little changed on Friday as thin volumes ahead of year-end holidays exaggerated movements.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed 0.08 percent lower at 2,632 ringgit ($800) a tonne after rising to 2,653 ringgit, its strongest since Dec. 12, on bargain hunting and worries about supply due to monsoon floods.
The Malaysian market, which sets the tone for global prices, is set for its first annual gain in three.
"We may see prices pressured downward unless the upward price momentum becomes stronger. The key support level will be 2,545 ringgit while the resistance level is 2,700 ringgit," said Teoh Say Hwa, head of investment at Phillip Futures.
Reflecting a volatile year-end trade, the contract had earlier dropped to an intraday low of 2,626 ringgit because of a slight rebound in the ringgit.
Total volumes were 19,149 lots, well below the average 35,000 lots.
Palm oil production in Malaysia might be hampered as a second wave of flood may hit Pahang by the end of December according to Malaysia Meteorology Department's warning, said Say Hwa at Phillip Futures.
Malaysia Palm Oil Board data shows the second largest matured oil palm planted area in Peninsular Malaysia is in Pahang and the possible flood may disrupt harvesting and transportation of fresh fruits in that area, she said.
The ringgit rose as a strong yuan spurred short-covering, but most emerging Asian currencies are likely to stay weaker on expectations a solid U.S. recovery may allow the Federal Reserve to further taper stimulus.
In other competing vegetable oil markets, the U.S. soyoil contract for January was up 0.21 percent, while the most active May soybean oil contract on the Dalian Commodities Exchange barely moved.
Palm, soy and crude oil prices at 1004 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN4 2615 +3.00 2600 2628 50
MY PALM OIL FEB4 2624 -2.00 2618 2640 2143
MY PALM OIL MAR4 2632 -2.00 2626 2653 10611
CHINA PALM OLEIN MAY4 6050 +112.00 5928 6066 860784
CHINA SOYOIL MAY4 6922 +46.00 6842 6928 557200
CBOT SOY OIL MAR4 39.31 +0.13 39.11 39.50 5394
NYMEX CRUDE FEB4 99.62 +0.07 99.37 99.77 6121
($1=3.29 Malaysian ringgit)
The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed 0.08 percent lower at 2,632 ringgit ($800) a tonne after rising to 2,653 ringgit, its strongest since Dec. 12, on bargain hunting and worries about supply due to monsoon floods.
The Malaysian market, which sets the tone for global prices, is set for its first annual gain in three.
"We may see prices pressured downward unless the upward price momentum becomes stronger. The key support level will be 2,545 ringgit while the resistance level is 2,700 ringgit," said Teoh Say Hwa, head of investment at Phillip Futures.
Reflecting a volatile year-end trade, the contract had earlier dropped to an intraday low of 2,626 ringgit because of a slight rebound in the ringgit.
Total volumes were 19,149 lots, well below the average 35,000 lots.
Palm oil production in Malaysia might be hampered as a second wave of flood may hit Pahang by the end of December according to Malaysia Meteorology Department's warning, said Say Hwa at Phillip Futures.
Malaysia Palm Oil Board data shows the second largest matured oil palm planted area in Peninsular Malaysia is in Pahang and the possible flood may disrupt harvesting and transportation of fresh fruits in that area, she said.
The ringgit rose as a strong yuan spurred short-covering, but most emerging Asian currencies are likely to stay weaker on expectations a solid U.S. recovery may allow the Federal Reserve to further taper stimulus.
In other competing vegetable oil markets, the U.S. soyoil contract for January was up 0.21 percent, while the most active May soybean oil contract on the Dalian Commodities Exchange barely moved.
Palm, soy and crude oil prices at 1004 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN4 2615 +3.00 2600 2628 50
MY PALM OIL FEB4 2624 -2.00 2618 2640 2143
MY PALM OIL MAR4 2632 -2.00 2626 2653 10611
CHINA PALM OLEIN MAY4 6050 +112.00 5928 6066 860784
CHINA SOYOIL MAY4 6922 +46.00 6842 6928 557200
CBOT SOY OIL MAR4 39.31 +0.13 39.11 39.50 5394
NYMEX CRUDE FEB4 99.62 +0.07 99.37 99.77 6121
($1=3.29 Malaysian ringgit)