MARKET DEVELOPMENT
VEGOILS-Palm Hits 5-wk Low as Crude Drops, Biggest Weekly Drop in 3
VEGOILS-Palm Hits 5-wk Low as Crude Drops, Biggest Weekly Drop in 3
(Updates prices, adds analysts' outlook and Sime Darby forecast)
* Palm down 2.8 pct this week, biggest weekly drop in three
* Oil hits new 4-year low after OPEC as glut looms
* Sliding Brent points to more downside risk for palm -Fry
* Palm price recovery hinges on Indonesian biodiesel mandate-Mistry
29/11/2014 (Reuters) - Malaysian palm oil futures fell to their lowest in more than five weeks on Friday and recorded their biggest weekly drop in three, dragged down by steep losses in crude oil after OPEC decided against curbing output.
OPEC's decision, which came after Saudi Arabia blocked calls from poorer members of the Organization of the Petroleum Exporting Countries for output reductions, sent benchmark Brent to a four-year intraday low at $71.12.
"There was no constructive decision made, causing crude oil prices to drop over $4, which affected palm oil and the Dalian prices," a trader with a foreign commodities brokerage in Kuala Lumpur said.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange slid to 2,150 ringgit, its lowest since Oct. 23, before settling down 1.3 percent at 2,172 ringgit ($642) per tonne by Friday's close. For the week, palm recorded a drop of 2.8 percent, its steepest decline in three weeks.
Total traded volume stood at 50,580 lots of 25 tonnes, much higher the usual 35,000 lots.
Malaysian palm prices may drop to 1,740 ringgit a tonne next year if Brent crude slides to $60 a barrel, industry analyst James Fry warned at a palm oil industry meet in Indonesia on Friday.
Additionally, any recovery in palm futures over the next year will hinge on Indonesia's biodiesel mandate, vegetable oil analyst Dorab Mistry said in the same palm oil meet.
Looking ahead, palm prices are expected to average 2,200-2,500 ringgit per tonne from now until June, said a senior official from Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size.
In other vegetable oil markets, the most active May soybean oil contract on the Dalian Commodities Exchange fell 1.4 percent in late Asian trade. U.S. soy markets were still closed for the U.S. Thanksgiving Day holiday.
Palm, soy and crude oil prices at 1025 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2143 -22.00 2118 2148 412
MY PALM OIL JAN5 2176 -21.00 2149 2176 4446
MY PALM OIL FEB5 2170 -31.00 2150 2179 22381
CHINA PALM OLEIN MAY5 5200 -114.00 5196 5320 1089450
CHINA SOYOIL MAY5 5800 -84.00 5780 5840 474650
CBOT SOY OIL JAN5 33.66 +0.00 0.00 0.00 0
INDIA PALM OIL NOV4 439.90 +0.00 439.20 443.90 149
INDIA SOYOIL DEC4 579.00 -1.55 576.00 579.50 27395
NYMEX CRUDE JAN5 68.89 -4.80 67.75 73.56 293087
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 = 3.381 Malaysian ringgit)
($1 = 6.1450 Chinese yuan)
($1 = 62.00 Indian rupee)
* Palm down 2.8 pct this week, biggest weekly drop in three
* Oil hits new 4-year low after OPEC as glut looms
* Sliding Brent points to more downside risk for palm -Fry
* Palm price recovery hinges on Indonesian biodiesel mandate-Mistry
29/11/2014 (Reuters) - Malaysian palm oil futures fell to their lowest in more than five weeks on Friday and recorded their biggest weekly drop in three, dragged down by steep losses in crude oil after OPEC decided against curbing output.
OPEC's decision, which came after Saudi Arabia blocked calls from poorer members of the Organization of the Petroleum Exporting Countries for output reductions, sent benchmark Brent to a four-year intraday low at $71.12.
"There was no constructive decision made, causing crude oil prices to drop over $4, which affected palm oil and the Dalian prices," a trader with a foreign commodities brokerage in Kuala Lumpur said.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange slid to 2,150 ringgit, its lowest since Oct. 23, before settling down 1.3 percent at 2,172 ringgit ($642) per tonne by Friday's close. For the week, palm recorded a drop of 2.8 percent, its steepest decline in three weeks.
Total traded volume stood at 50,580 lots of 25 tonnes, much higher the usual 35,000 lots.
Malaysian palm prices may drop to 1,740 ringgit a tonne next year if Brent crude slides to $60 a barrel, industry analyst James Fry warned at a palm oil industry meet in Indonesia on Friday.
Additionally, any recovery in palm futures over the next year will hinge on Indonesia's biodiesel mandate, vegetable oil analyst Dorab Mistry said in the same palm oil meet.
Looking ahead, palm prices are expected to average 2,200-2,500 ringgit per tonne from now until June, said a senior official from Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size.
In other vegetable oil markets, the most active May soybean oil contract on the Dalian Commodities Exchange fell 1.4 percent in late Asian trade. U.S. soy markets were still closed for the U.S. Thanksgiving Day holiday.
Palm, soy and crude oil prices at 1025 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC4 2143 -22.00 2118 2148 412
MY PALM OIL JAN5 2176 -21.00 2149 2176 4446
MY PALM OIL FEB5 2170 -31.00 2150 2179 22381
CHINA PALM OLEIN MAY5 5200 -114.00 5196 5320 1089450
CHINA SOYOIL MAY5 5800 -84.00 5780 5840 474650
CBOT SOY OIL JAN5 33.66 +0.00 0.00 0.00 0
INDIA PALM OIL NOV4 439.90 +0.00 439.20 443.90 149
INDIA SOYOIL DEC4 579.00 -1.55 576.00 579.50 27395
NYMEX CRUDE JAN5 68.89 -4.80 67.75 73.56 293087
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 = 3.381 Malaysian ringgit)
($1 = 6.1450 Chinese yuan)
($1 = 62.00 Indian rupee)