MARKET DEVELOPMENT
VEGOILS-Palm Oil Rises From Near One-month Low as Output Jitters Fade
VEGOILS-Palm Oil Rises From Near One-month Low as Output Jitters Fade
(Recasts to reflect change in market movement, updates prices)
* Malaysia's Nov. 1-25 palm oil exports fall 2.9-3.3 pct - cargo surveyors
* Palm oil to fall to 2,176 ringgit - technicals
26/11/2014 (Reuters) - Malaysian palm oil futures rose on Tuesday, pulling away from a near one-month low as jitters about a projected increase in crude palm oil production in November faded in the second half of the session.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed 0.5 percent higher at 2,218 ringgit ($662) per tonne, recovering from an Oct. 28 low of 2,187 ringgit hit in early trade.
The Malaysian Palm Oil Association, a group of growers in the second-largest producer, forecast that palm oil output rose 2.4 percent between Nov. 1-20 compared with a month ago, lifted by a 9 percent increase in yields in the Borneo state of Sabah.
"People thought full month palm oil production would be 7-10 percent down in November, but when they saw the 20 days projection was up 2.1 percent, that surprised the market and some panic selling came in," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But that stabilised in the second half and people became a bit immune to that news, so prices began to move higher."
Tepid export demand, however, capped the rise in palm prices. Shipments of Malaysian palm oil products for Nov. 1-25 fell 2.9 percent to 1,102,724 tonnes from a month ago, according to cargo surveyor Intertek Testing Services.
Another cargo surveyor Societe Generale de Surveillance reported that exports for the same period fell 3.3 percent.
A Singapore-based palm trader said export demand would likely remain weak for the rest of November.
Total traded volume for crude palm oil futures on the Bursa Malaysia Derivatives Exchange stood at 46,234 lots of 25 tonnes on Tuesday, much higher than the usual 35,000 lots.
A third day of gains for the Malaysian ringgit, which rose a further 0.1 percent to 3.3485 per dollar on Tuesday, also limited gains for ringgit-priced palm oil.
A prolonged fall in palm prices, down 17 percent this year, is hitting Indonesia's smallholder farmers, which account for about 40 percent of output from the world's No.1 grower, forcing cutbacks that may reduce supply in the coming years.
In other markets, Brent crude oil prices steadied under $80 a barrel on Tuesday ahead of a meeting of OPEC oil producers to decide on oil production levels for next year.
In other competing vegetable oil markets, the U.S. soyoil contract for December fell 0.5 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2201 +6.00 2180 2205 279
MY PALM OIL JAN5 2213 +16.00 2185 2220 2632
MY PALM OIL FEB5 2218 +12.00 2187 2223 28556
CHINA PALM OLEIN MAY5 5318 -26.00 5286 5336 751214
CHINA SOYOIL MAY5 5894 +6.00 5884 5932 453138
CBOT SOY OIL JAN5 33.24 -2.90 33.13 33.36 8468
INDIA PALM OIL NOV4 444.00 -2.90 443.30 445.50 158
INDIA SOYOIL DEC4 591.90 -2.75 591.00 595.00 22115
NYMEX CRUDE JAN5 76.16 +0.38 75.47 76.19 17469
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 = 3.352 Malaysian ringgit)
($1 = 6.1365 Chinese yuan)
($1 = 61.84 Indian rupee)
* Malaysia's Nov. 1-25 palm oil exports fall 2.9-3.3 pct - cargo surveyors
* Palm oil to fall to 2,176 ringgit - technicals
26/11/2014 (Reuters) - Malaysian palm oil futures rose on Tuesday, pulling away from a near one-month low as jitters about a projected increase in crude palm oil production in November faded in the second half of the session.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed 0.5 percent higher at 2,218 ringgit ($662) per tonne, recovering from an Oct. 28 low of 2,187 ringgit hit in early trade.
The Malaysian Palm Oil Association, a group of growers in the second-largest producer, forecast that palm oil output rose 2.4 percent between Nov. 1-20 compared with a month ago, lifted by a 9 percent increase in yields in the Borneo state of Sabah.
"People thought full month palm oil production would be 7-10 percent down in November, but when they saw the 20 days projection was up 2.1 percent, that surprised the market and some panic selling came in," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But that stabilised in the second half and people became a bit immune to that news, so prices began to move higher."
Tepid export demand, however, capped the rise in palm prices. Shipments of Malaysian palm oil products for Nov. 1-25 fell 2.9 percent to 1,102,724 tonnes from a month ago, according to cargo surveyor Intertek Testing Services.
Another cargo surveyor Societe Generale de Surveillance reported that exports for the same period fell 3.3 percent.
A Singapore-based palm trader said export demand would likely remain weak for the rest of November.
Total traded volume for crude palm oil futures on the Bursa Malaysia Derivatives Exchange stood at 46,234 lots of 25 tonnes on Tuesday, much higher than the usual 35,000 lots.
A third day of gains for the Malaysian ringgit, which rose a further 0.1 percent to 3.3485 per dollar on Tuesday, also limited gains for ringgit-priced palm oil.
A prolonged fall in palm prices, down 17 percent this year, is hitting Indonesia's smallholder farmers, which account for about 40 percent of output from the world's No.1 grower, forcing cutbacks that may reduce supply in the coming years.
In other markets, Brent crude oil prices steadied under $80 a barrel on Tuesday ahead of a meeting of OPEC oil producers to decide on oil production levels for next year.
In other competing vegetable oil markets, the U.S. soyoil contract for December fell 0.5 percent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2201 +6.00 2180 2205 279
MY PALM OIL JAN5 2213 +16.00 2185 2220 2632
MY PALM OIL FEB5 2218 +12.00 2187 2223 28556
CHINA PALM OLEIN MAY5 5318 -26.00 5286 5336 751214
CHINA SOYOIL MAY5 5894 +6.00 5884 5932 453138
CBOT SOY OIL JAN5 33.24 -2.90 33.13 33.36 8468
INDIA PALM OIL NOV4 444.00 -2.90 443.30 445.50 158
INDIA SOYOIL DEC4 591.90 -2.75 591.00 595.00 22115
NYMEX CRUDE JAN5 76.16 +0.38 75.47 76.19 17469
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 = 3.352 Malaysian ringgit)
($1 = 6.1365 Chinese yuan)
($1 = 61.84 Indian rupee)