MARKET DEVELOPMENT
VEGOILS-Palm Ends Lower on Bleak Global Outlook, Weather Worries Supports.
VEGOILS-Palm Ends Lower on Bleak Global Outlook, Weather Worries Supports.
(Recasts)
* Palm prices may touch 6-yr lows despite bad weather - industry
* Indonesian palm output may rise to 32.5 mln tonnes in 2015 -industry official
* Weak El Nino unlikely to disrupt Southeast Asia palm supply -research company
20/01/2015 (Reuters) - Malaysian palm oil futures ended lower in choppy trade on Monday, reversing gains made in the morning session on concerns that a gloomy global economic outlook will weaken prices.
The benchmark contract had risen in early trade to touch 2,336 ringgit as wet weather lifted expectations that January output could be lower than expected, following flood warnings from Malaysia's weather bureau for parts of its top growing regions of Sabah and Sarawak.
"On the local front, there's the weather market at play and the currency factor that is supportive to palm oil," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But on a more extensive global market, crude oil and most commodity prices are trading on the weak side. This is hanging over the market," the trader said, adding that the immediate support level for palm is at 2,300 ringgit.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange had lost 0.1 percent to 2,304 ringgit ($645) per tonne by Monday's close.
Total traded volume stood at 35,018 lots of 25 tonnes, just above the typical 35,000 lots.
Palm oil futures may fall this year to their lowest level since February 2009 despite poor weather in the top growing countries. Trade may be volatile due to uncertainty in the global economy, senior industry officials said on Monday.
Drought in Indonesia and floods in Malaysia, which could damage crops, may cause tight supplies but any El Nino phenomenon this year will be weak and therefore not as damaging to output as feared, the officials told a conference in Kuala Lumpur.
Crude palm oil output in Indonesia and Malaysia supply about 85 percent of the world's palm oil.
An official from the Malaysian Palm Oil Board said that the Malaysian palm prices could even drop to as low as 1,820 ringgit this year, but may also rise to as high as 2,750 ringgit.
Elsewhere, Thailand plans to import around 50,000 tonnes of crude palm oil from February due to a domestic shortage caused by drought, using a 1.5 billion baht ($46 million) government fund.
In other markets, Brent crude oil prices fell below $50 a barrel on Monday after Iraq announced record oil production and the global economic outlook darkened.
In competing vegetable oil markets, the most active May soybean oil contract on the Dalian Commodities Exchange fell 0.7 percent.
Palm, soy and crude oil prices at 1035 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB5 2342 -6.00 2333 2361 288
MY PALM OIL MAR5 2320 -4.00 2317 2354 5909
MY PALM OIL APR5 2304 -3.00 2302 2336 17460
CHINA PALM OLEIN MAY5 4896 -54.00 4760 4982 718154
CHINA SOYOIL MAY5 5584 -40.00 5434 5692 921850
CBOT SOY OIL MAR5 33.39 -1.70 0.00 0.00 0
INDIA PALM OIL JAN5 457.10 -1.70 455.60 459.50 437
INDIA SOYOIL JAN5 677.00 +1.60 675.00 678.50 5820
NYMEX CRUDE FEB5 48.17 -0.52 47.76 48.77 4887
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 = 3.5700 ringgit)
($1 = 6.2203 Chinese yuan)
($1 = 61.77 Indian rupee)
* Palm prices may touch 6-yr lows despite bad weather - industry
* Indonesian palm output may rise to 32.5 mln tonnes in 2015 -industry official
* Weak El Nino unlikely to disrupt Southeast Asia palm supply -research company
20/01/2015 (Reuters) - Malaysian palm oil futures ended lower in choppy trade on Monday, reversing gains made in the morning session on concerns that a gloomy global economic outlook will weaken prices.
The benchmark contract had risen in early trade to touch 2,336 ringgit as wet weather lifted expectations that January output could be lower than expected, following flood warnings from Malaysia's weather bureau for parts of its top growing regions of Sabah and Sarawak.
"On the local front, there's the weather market at play and the currency factor that is supportive to palm oil," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"But on a more extensive global market, crude oil and most commodity prices are trading on the weak side. This is hanging over the market," the trader said, adding that the immediate support level for palm is at 2,300 ringgit.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange had lost 0.1 percent to 2,304 ringgit ($645) per tonne by Monday's close.
Total traded volume stood at 35,018 lots of 25 tonnes, just above the typical 35,000 lots.
Palm oil futures may fall this year to their lowest level since February 2009 despite poor weather in the top growing countries. Trade may be volatile due to uncertainty in the global economy, senior industry officials said on Monday.
Drought in Indonesia and floods in Malaysia, which could damage crops, may cause tight supplies but any El Nino phenomenon this year will be weak and therefore not as damaging to output as feared, the officials told a conference in Kuala Lumpur.
Crude palm oil output in Indonesia and Malaysia supply about 85 percent of the world's palm oil.
An official from the Malaysian Palm Oil Board said that the Malaysian palm prices could even drop to as low as 1,820 ringgit this year, but may also rise to as high as 2,750 ringgit.
Elsewhere, Thailand plans to import around 50,000 tonnes of crude palm oil from February due to a domestic shortage caused by drought, using a 1.5 billion baht ($46 million) government fund.
In other markets, Brent crude oil prices fell below $50 a barrel on Monday after Iraq announced record oil production and the global economic outlook darkened.
In competing vegetable oil markets, the most active May soybean oil contract on the Dalian Commodities Exchange fell 0.7 percent.
Palm, soy and crude oil prices at 1035 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB5 2342 -6.00 2333 2361 288
MY PALM OIL MAR5 2320 -4.00 2317 2354 5909
MY PALM OIL APR5 2304 -3.00 2302 2336 17460
CHINA PALM OLEIN MAY5 4896 -54.00 4760 4982 718154
CHINA SOYOIL MAY5 5584 -40.00 5434 5692 921850
CBOT SOY OIL MAR5 33.39 -1.70 0.00 0.00 0
INDIA PALM OIL JAN5 457.10 -1.70 455.60 459.50 437
INDIA SOYOIL JAN5 677.00 +1.60 675.00 678.50 5820
NYMEX CRUDE FEB5 48.17 -0.52 47.76 48.77 4887
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 = 3.5700 ringgit)
($1 = 6.2203 Chinese yuan)
($1 = 61.77 Indian rupee)