MARKET DEVELOPMENT
VEGOILS-Palm Oil Ends At 1-1/2 Month Low, Weak Exports Drag
VEGOILS-Palm Oil Ends At 1-1/2 Month Low, Weak Exports Drag
02/04/2014 (Reuters) - Malaysian palm oil futures ended lower on Tuesday, reversing gains in the morning sesssion to a more than one-month low dragged by a lagging demand for the tropical oil and a firm ringgit.
Palm prices had edged up to 2,652 ringgit in the early session before giving up gains after the midday break.
"Prices have dropped from 2,900 ringgit to the current level because of poor demand," said a trader with a local commodities brokerage. "Normally, March exports are higher than February."
Cargo surveyors reported that Malaysia's palm oil exports in March fell 3 percent to 1.20-1.21 million tonnes from a month ago, as the world's top buyers India and China cut back purchases.
The benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 0.9 percent to 2,611 ringgit ($800) per tonne by Tuesday's close. Prices earlier slpped to 2,610 ringgit, their lowest since Feb. 12.
Total traded volume stood at 48,794 lots of 25 tonnes, above the average 35,000 lots.
Palm prices posted their biggest monthly drop in over a year with a near 6 percent fall in March, after a whopping 10 percent gain in February, hurt by disappointing export demand.
Technicals showed that the intraday target for palm oil is at 2,613 ringgit, with a resistance level at 2,650 ringgit, according to Reuters market analyst Wang Tao.
A strengthening Malaysian ringgit also hampered buying interest from overseas investors and refiners as it made palm feedstock more expensive. The ringgit edged up 0.17 percent against the greenback late Tuesday to trade at 3.2600.
In other markets, Brent crude slipped towards $107 on Tuesday due to lacklustre manufacturing data from China and Europe and the possibility of a jump in supplies from Libya after rebels blocking eastern oil ports hinted at a deal with Tripoli.
In competing vegetable oil markets, the U.S. soyoil contract for May rose 0.6 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodities Exchange lost 0.1 percent.
Palm, soy and crude oil prices at 1009 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR4 2688 -30.00 2688 2728 215
MY PALM OIL MAY4 2632 -24.00 2632 2680 4872
MY PALM OIL JUN4 2611 -23.00 2610 2652 24593
CHINA PALM OLEIN SEP4 6194 +16.00 6124 6210 550946
CHINA SOYOIL SEP4 6924 -6.00 6878 6958 553462
CBOT SOY OIL MAY4 40.66 +0.24 40.37 40.72 7159
NYMEX CRUDE MAY4 101.28 -0.30 101.01 101.57 12022
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 = 3.262 Malaysian ringgit)
($1 = 6.2029 Chinese yuan)
Palm prices had edged up to 2,652 ringgit in the early session before giving up gains after the midday break.
"Prices have dropped from 2,900 ringgit to the current level because of poor demand," said a trader with a local commodities brokerage. "Normally, March exports are higher than February."
Cargo surveyors reported that Malaysia's palm oil exports in March fell 3 percent to 1.20-1.21 million tonnes from a month ago, as the world's top buyers India and China cut back purchases.
The benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 0.9 percent to 2,611 ringgit ($800) per tonne by Tuesday's close. Prices earlier slpped to 2,610 ringgit, their lowest since Feb. 12.
Total traded volume stood at 48,794 lots of 25 tonnes, above the average 35,000 lots.
Palm prices posted their biggest monthly drop in over a year with a near 6 percent fall in March, after a whopping 10 percent gain in February, hurt by disappointing export demand.
Technicals showed that the intraday target for palm oil is at 2,613 ringgit, with a resistance level at 2,650 ringgit, according to Reuters market analyst Wang Tao.
A strengthening Malaysian ringgit also hampered buying interest from overseas investors and refiners as it made palm feedstock more expensive. The ringgit edged up 0.17 percent against the greenback late Tuesday to trade at 3.2600.
In other markets, Brent crude slipped towards $107 on Tuesday due to lacklustre manufacturing data from China and Europe and the possibility of a jump in supplies from Libya after rebels blocking eastern oil ports hinted at a deal with Tripoli.
In competing vegetable oil markets, the U.S. soyoil contract for May rose 0.6 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodities Exchange lost 0.1 percent.
Palm, soy and crude oil prices at 1009 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR4 2688 -30.00 2688 2728 215
MY PALM OIL MAY4 2632 -24.00 2632 2680 4872
MY PALM OIL JUN4 2611 -23.00 2610 2652 24593
CHINA PALM OLEIN SEP4 6194 +16.00 6124 6210 550946
CHINA SOYOIL SEP4 6924 -6.00 6878 6958 553462
CBOT SOY OIL MAY4 40.66 +0.24 40.37 40.72 7159
NYMEX CRUDE MAY4 101.28 -0.30 101.01 101.57 12022
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 = 3.262 Malaysian ringgit)
($1 = 6.2029 Chinese yuan)