MARKET DEVELOPMENT
VEGOILS-Palm Declines on Ringgit Rally, Weak Crude Prices
VEGOILS-Palm Declines on Ringgit Rally, Weak Crude Prices
(Updates prices)
* Traders eyeing China demand after holiday
* Growers group sees September output down 7.6 pct
* Prices seen approaching support at 2,142 ringgit -technicals
* Ringgit near 3-week high on Thursday
10/10/2014 (Reuters) - Malaysian palm oil fell on Thursday as the ringgit rallied and following recent declines in competing edible oil and crude prices, traders said, although recent trade and production data was seen providing support.
Palm oil prices generally move in opposite directions to the ringgit, as international buyers effectively get more palm oil for their money when the currency is down.
Optimism on the eve of Malaysia's 2015 budget announcement drove the ringgit to a near-three week high of 3.2310 against the dollar on Thursday, as the market bet on fiscal responsibility following this week's fuel subsidy cuts.
Brent oil fell to $91 a barrel on Thursday, heading back to over two-year lows, as a supply glut and concerns about global growth have pushed it 20 percent down from its peak in June.
Lower crude prices take away some fuel demand from palm as it makes the tropical oil a less attractive option for biodiesel feedstock.
"Our market today also saw a delayed reaction to the soybean oil sell-down," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that traders were watching Chinese demand for edible oils after amid weaker-than-expected demand following a week of holidays.
Chicago Board of Trade soybean futures fell on Wednesday on huge production expectations for the United States. Soyoil futures have faced pressure from light demand as end users are waiting to see if prices fall further after harvest time before committing to new deals.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange had declined 0.2 percent to 2,190 ringgit ($676) per tonne by Thursday's close, with prices choppy between 2,165 and 2,218 ringgit.
Total traded volume stood at 47,791 lots of 25 tonnes, above the daily average of 35,000 lots.
Technicals showed palm oil may approach support at 2,142 ringgit per tonne, as it has not completed a correction from the Oct. 1 high of 2,223 ringgit, said Reuters market analyst Wang Tao.
The Malaysian Palm Oil Association, a group of growers, estimates palm oil output in Malaysia fell 7.6 percent for the month of September from a month earlier, against recent Reuters poll that forecast production to drop 8 percent to 1.87 million tonnes.
Palm oil prices are expected to average 2,300-2,400 ringgit per tonne in the fourth quarter this year, according to the managing director of the plantations unit of Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size.
In other competing vegetable oil markets, the U.S. soyoil contract for December inched up 0.8 percent in late Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange rose 0.8 percent.
Palm, soy and crude oil prices at 1029 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT4 2220 +0.00 2208 2249 90
MY PALM OIL NOV4 2208 -5.00 2188 2231 3026
MY PALM OIL DEC4 2190 -5.00 2165 2218 29486
CHINA PALM OLEIN JAN5 5276 +36.00 5218 5284 475438
CHINA SOYOIL JAN5 5980 +50.00 5910 5982 385818
CBOT SOY OIL DEC4 33.28 -3.70 32.90 33.45 6706
INDIA PALM OIL OCT4 452.90 -3.70 452.50 457.50 1441
INDIA SOYOIL OCT4 605.90 -1.05 604.40 608.90 9740
NYMEX CRUDE NOV4 87.27 -0.04 87.14 87.95 27413
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
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 3.239 Malaysian ringgit)
($1 = 6.1305 Chinese yuan)
($1 = 60.98 Indian rupees)
* Traders eyeing China demand after holiday
* Growers group sees September output down 7.6 pct
* Prices seen approaching support at 2,142 ringgit -technicals
* Ringgit near 3-week high on Thursday
10/10/2014 (Reuters) - Malaysian palm oil fell on Thursday as the ringgit rallied and following recent declines in competing edible oil and crude prices, traders said, although recent trade and production data was seen providing support.
Palm oil prices generally move in opposite directions to the ringgit, as international buyers effectively get more palm oil for their money when the currency is down.
Optimism on the eve of Malaysia's 2015 budget announcement drove the ringgit to a near-three week high of 3.2310 against the dollar on Thursday, as the market bet on fiscal responsibility following this week's fuel subsidy cuts.
Brent oil fell to $91 a barrel on Thursday, heading back to over two-year lows, as a supply glut and concerns about global growth have pushed it 20 percent down from its peak in June.
Lower crude prices take away some fuel demand from palm as it makes the tropical oil a less attractive option for biodiesel feedstock.
"Our market today also saw a delayed reaction to the soybean oil sell-down," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that traders were watching Chinese demand for edible oils after amid weaker-than-expected demand following a week of holidays.
Chicago Board of Trade soybean futures fell on Wednesday on huge production expectations for the United States. Soyoil futures have faced pressure from light demand as end users are waiting to see if prices fall further after harvest time before committing to new deals.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange had declined 0.2 percent to 2,190 ringgit ($676) per tonne by Thursday's close, with prices choppy between 2,165 and 2,218 ringgit.
Total traded volume stood at 47,791 lots of 25 tonnes, above the daily average of 35,000 lots.
Technicals showed palm oil may approach support at 2,142 ringgit per tonne, as it has not completed a correction from the Oct. 1 high of 2,223 ringgit, said Reuters market analyst Wang Tao.
The Malaysian Palm Oil Association, a group of growers, estimates palm oil output in Malaysia fell 7.6 percent for the month of September from a month earlier, against recent Reuters poll that forecast production to drop 8 percent to 1.87 million tonnes.
Palm oil prices are expected to average 2,300-2,400 ringgit per tonne in the fourth quarter this year, according to the managing director of the plantations unit of Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size.
In other competing vegetable oil markets, the U.S. soyoil contract for December inched up 0.8 percent in late Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange rose 0.8 percent.
Palm, soy and crude oil prices at 1029 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT4 2220 +0.00 2208 2249 90
MY PALM OIL NOV4 2208 -5.00 2188 2231 3026
MY PALM OIL DEC4 2190 -5.00 2165 2218 29486
CHINA PALM OLEIN JAN5 5276 +36.00 5218 5284 475438
CHINA SOYOIL JAN5 5980 +50.00 5910 5982 385818
CBOT SOY OIL DEC4 33.28 -3.70 32.90 33.45 6706
INDIA PALM OIL OCT4 452.90 -3.70 452.50 457.50 1441
INDIA SOYOIL OCT4 605.90 -1.05 604.40 608.90 9740
NYMEX CRUDE NOV4 87.27 -0.04 87.14 87.95 27413
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
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 3.239 Malaysian ringgit)
($1 = 6.1305 Chinese yuan)
($1 = 60.98 Indian rupees)