MARKET DEVELOPMENT
VEGOILS-Palm Snaps Near-3-day Gain on Weaker Veg Oils, Profit Taking
VEGOILS-Palm Snaps Near-3-day Gain on Weaker Veg Oils, Profit Taking
* Palm seen increasing to 2,288 ringgit -technicals
* Range-trading to continue until prices pass 2,300 level -trader
* Ringgit at weakest in four years (Recasts, updates closing prices, adds details/comments)
20/11/2014 (Reuters) - Malaysian palm oil edged down on Wednesday, tracking declines in competing vegetable oil markets as traders took profits, but supported by weakness in the ringgit.
The benchmark February palm oil contract on the Bursa Malaysia Derivatives Exchange ended down 0.3 percent at 2,245 ringgit ($668) per tonne. The contract is up 1.9 percent so far this week.
Total traded volume on Wednesday stood at 34,564 lots of 25 tonnes, just below the average 35,000 lots.
"One hour before the close weakness in soybean oil influenced Malaysian palm oil," a trader with foreign commodities brokerage said late on Wednesday.
"The whole day the market was up on the back of the weak ringgit and nothing else. It was the third day up, so there has been a bit of profit-taking."
U.S. soyoil for December edged down 0.4 percent in late Asian trade on Wednesday, while the most active May soybean oil contract on the Dalian Commodities Exchange rose 0.4 percent. Both contracts have been trading within relatively tight ranges since early August.
Malaysia's ringgit eased 0.2 percent to 3.359 per dollar on Wednesday, its weakest level since May 2010. The ringgit has lost 6.6 percent against the dollar since the beginning of September, making palm oil more attractive to international buyers.
"The ringgit weakening to 3.35 has the potential to further encourage exports," a trader with a foreign commodities brokerage in Kuala Lumpur told Reuters.
Technicals showed palm oil is expected to rise to 2,288 ringgit per tonne as it has cleared resistance at 2,253 ringgit, said Reuters market analyst Wang Tao.
Despite the recent gains, palm oil needs to break past the 2,300 level to exit range trading, traders said.
Palm oil output in Indonesia will rise by only 500,000 tonnes this year, an industry group in the world's top producer said, lower than a previous estimate due to a longer than usual dry season in key plantation areas.
In other markets, Brent crude oil slipped towards $78 a barrel on Wednesday as data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market and as producers appeared divided ahead of an OPEC meeting to discuss output. Palm, soy and crude oil prices at 1119 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC4 2234 +4.00 2231 2246 195 MY PALM OIL JAN5 2242 -6.00 2231 2263 7743 MY PALM OIL FEB5 2245 -6.00 2236 2270 18344 CHINA PALM OLEIN MAY5 5344 +14.00 5318 5378 856430 CHINA SOYOIL MAY5 5880 +24.00 5840 5916 472710 CBOT SOY OIL DEC4 32.51 -1.30 32.40 32.70 10523 INDIA PALM OIL NOV4 446.00 -1.30 444.60 448.50 384 INDIA SOYOIL NOV4 570.30 -2.70 570.30 572.50 1270 NYMEX CRUDE DEC4 74.67 +0.06 73.88 74.72 5612.
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 US dollar = 3.3590 Malaysian ringgit)
(1 US dollar = 6.1190 Chinese yuan)
(1 US dollar = 61.9400 Indian rupee)
* Range-trading to continue until prices pass 2,300 level -trader
* Ringgit at weakest in four years (Recasts, updates closing prices, adds details/comments)
20/11/2014 (Reuters) - Malaysian palm oil edged down on Wednesday, tracking declines in competing vegetable oil markets as traders took profits, but supported by weakness in the ringgit.
The benchmark February palm oil contract on the Bursa Malaysia Derivatives Exchange ended down 0.3 percent at 2,245 ringgit ($668) per tonne. The contract is up 1.9 percent so far this week.
Total traded volume on Wednesday stood at 34,564 lots of 25 tonnes, just below the average 35,000 lots.
"One hour before the close weakness in soybean oil influenced Malaysian palm oil," a trader with foreign commodities brokerage said late on Wednesday.
"The whole day the market was up on the back of the weak ringgit and nothing else. It was the third day up, so there has been a bit of profit-taking."
U.S. soyoil for December edged down 0.4 percent in late Asian trade on Wednesday, while the most active May soybean oil contract on the Dalian Commodities Exchange rose 0.4 percent. Both contracts have been trading within relatively tight ranges since early August.
Malaysia's ringgit eased 0.2 percent to 3.359 per dollar on Wednesday, its weakest level since May 2010. The ringgit has lost 6.6 percent against the dollar since the beginning of September, making palm oil more attractive to international buyers.
"The ringgit weakening to 3.35 has the potential to further encourage exports," a trader with a foreign commodities brokerage in Kuala Lumpur told Reuters.
Technicals showed palm oil is expected to rise to 2,288 ringgit per tonne as it has cleared resistance at 2,253 ringgit, said Reuters market analyst Wang Tao.
Despite the recent gains, palm oil needs to break past the 2,300 level to exit range trading, traders said.
Palm oil output in Indonesia will rise by only 500,000 tonnes this year, an industry group in the world's top producer said, lower than a previous estimate due to a longer than usual dry season in key plantation areas.
In other markets, Brent crude oil slipped towards $78 a barrel on Wednesday as data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market and as producers appeared divided ahead of an OPEC meeting to discuss output. Palm, soy and crude oil prices at 1119 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC4 2234 +4.00 2231 2246 195 MY PALM OIL JAN5 2242 -6.00 2231 2263 7743 MY PALM OIL FEB5 2245 -6.00 2236 2270 18344 CHINA PALM OLEIN MAY5 5344 +14.00 5318 5378 856430 CHINA SOYOIL MAY5 5880 +24.00 5840 5916 472710 CBOT SOY OIL DEC4 32.51 -1.30 32.40 32.70 10523 INDIA PALM OIL NOV4 446.00 -1.30 444.60 448.50 384 INDIA SOYOIL NOV4 570.30 -2.70 570.30 572.50 1270 NYMEX CRUDE DEC4 74.67 +0.06 73.88 74.72 5612.
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 US dollar = 3.3590 Malaysian ringgit)
(1 US dollar = 6.1190 Chinese yuan)
(1 US dollar = 61.9400 Indian rupee)