MARKET DEVELOPMENT
VEGOILS-Palm Oil at 6-Week Low on Slowing Demand, Weaker Energy
VEGOILS-Palm Oil at 6-Week Low on Slowing Demand, Weaker Energy
* Falls after 2 sessions of gains, near 6-week low
* Slowing demand, plentiful supplies weigh
* Crude oil near 6-year low, adding pressure (Updates prices)
30/01/2015 (Reuters) - Malaysian palm oil slid morethan 3 percent on Thursday as the market snapped two sessions of gains to drop to its lowest in almost six weeks, under pressurefrom plentiful global edible oil supplies and slowing demand.
Crude oil prices at six-year lows have reduced the appeal ofvegetable oils in making renewable fuels, while local palm oilyields are expected to improve later in the year.
"Palm oil has been unable to hold on to gains in the face ofpersistent weakness in soy complexes and lower energy prices,"said one Kuala Lumpur-based trader. "The bearish scenario incommodity markets will keep pressure on palm oil."
The benchmark April contract finished down 3.5percent, or 77 ringgit, at 2,133 ringgit ($588) per tonne afterdropping to 2,128 ringgit a tonne, its lowest since Dec. 19.
Traded volumes stood at 56,385 lots of 25 tonnes each, wellabove the typical 35,000 lots.
Oil remained weak in Asia on Thursday after data showingrecord U.S. stockpiles sent prices tumbling to the lowest levelin nearly six years in the previous session and analysts said aglobal glut would continue to keep the market underpressure.
On the technical front signals will be mixed for palm oiluntil it gets out of a neutral range of 2,154-2,211 ringgit pertonne, Wang Tao, a Reuters market analyst for commodities andenergy said.
Recent flooding in Malaysia is expected to dent palm oiloutput in the first quarter but should lead to higher yields forthe rest of the year, putting pressure on prices in a wellsupplied market.
The demand remains weak. Exports of Malaysian palm oilproducts during Jan. 1-25 fell 17.7 percent from a monthearlier, cargo surveyor Intertek Testing Services said onMonday.
In other vegetable oil markets, U.S. soyoil fell 1.4percent in Asian trade and the most active soybean oil contract on the Dalian Commodity Exchange lost 1 percent.
Palm, soy and crude oil prices at 1010 GMTContract Month Last Change Low High VolumeMY PALM OIL FEB5 2153 -68.00 2152 2180 248MY PALM OIL MAR5 2140 -77.00 2140 2188 1439MY PALM OIL APR5 2133 -77.00 2128 2182 33396CHINA PALM OLEIN MAY5 4756 -54.00 4736 4818 332030CHINA SOYOIL MAY5 5426 -56.00 5396 5480 429904CBOT SOY OIL MAR5 29.91 -1.40 29.86 30.38 5681INDIA PALM OIL JAN5 424.00 -1.40 423.40 426.00 188INDIA SOYOIL FEB5 607.50 -5.25 607.20 615.50 38915NYMEX CRUDE MAR5 44.70 +0.26 44.21 44.77 21620Palm oil prices in Malaysian ringgit per tonneCBOT soy oil in U.S. cents per poundDalian soy oil and RBD palm olein in Chinese yuan per tonneIndia soy oil in Indian rupee per 10 kgCrude in U.S. dollars per barrel
* Slowing demand, plentiful supplies weigh
* Crude oil near 6-year low, adding pressure (Updates prices)
30/01/2015 (Reuters) - Malaysian palm oil slid morethan 3 percent on Thursday as the market snapped two sessions of gains to drop to its lowest in almost six weeks, under pressurefrom plentiful global edible oil supplies and slowing demand.
Crude oil prices at six-year lows have reduced the appeal ofvegetable oils in making renewable fuels, while local palm oilyields are expected to improve later in the year.
"Palm oil has been unable to hold on to gains in the face ofpersistent weakness in soy complexes and lower energy prices,"said one Kuala Lumpur-based trader. "The bearish scenario incommodity markets will keep pressure on palm oil."
The benchmark April contract finished down 3.5percent, or 77 ringgit, at 2,133 ringgit ($588) per tonne afterdropping to 2,128 ringgit a tonne, its lowest since Dec. 19.
Traded volumes stood at 56,385 lots of 25 tonnes each, wellabove the typical 35,000 lots.
Oil remained weak in Asia on Thursday after data showingrecord U.S. stockpiles sent prices tumbling to the lowest levelin nearly six years in the previous session and analysts said aglobal glut would continue to keep the market underpressure.
On the technical front signals will be mixed for palm oiluntil it gets out of a neutral range of 2,154-2,211 ringgit pertonne, Wang Tao, a Reuters market analyst for commodities andenergy said.
Recent flooding in Malaysia is expected to dent palm oiloutput in the first quarter but should lead to higher yields forthe rest of the year, putting pressure on prices in a wellsupplied market.
The demand remains weak. Exports of Malaysian palm oilproducts during Jan. 1-25 fell 17.7 percent from a monthearlier, cargo surveyor Intertek Testing Services said onMonday.
In other vegetable oil markets, U.S. soyoil fell 1.4percent in Asian trade and the most active soybean oil contract on the Dalian Commodity Exchange lost 1 percent.
Palm, soy and crude oil prices at 1010 GMTContract Month Last Change Low High VolumeMY PALM OIL FEB5 2153 -68.00 2152 2180 248MY PALM OIL MAR5 2140 -77.00 2140 2188 1439MY PALM OIL APR5 2133 -77.00 2128 2182 33396CHINA PALM OLEIN MAY5 4756 -54.00 4736 4818 332030CHINA SOYOIL MAY5 5426 -56.00 5396 5480 429904CBOT SOY OIL MAR5 29.91 -1.40 29.86 30.38 5681INDIA PALM OIL JAN5 424.00 -1.40 423.40 426.00 188INDIA SOYOIL FEB5 607.50 -5.25 607.20 615.50 38915NYMEX CRUDE MAR5 44.70 +0.26 44.21 44.77 21620Palm oil prices in Malaysian ringgit per tonneCBOT soy oil in U.S. cents per poundDalian soy oil and RBD palm olein in Chinese yuan per tonneIndia soy oil in Indian rupee per 10 kgCrude in U.S. dollars per barrel