MARKET DEVELOPMENT
VEGOILS-Palm Oil Climbs to Three-week High as Crude Oil Prices Jump
VEGOILS-Palm Oil Climbs to Three-week High as Crude Oil Prices Jump
(Updates prices, adds trader quote, updates milestone)
* Oil up more than $1 after Saudi's Asia price hike
* Palm oil to test resistance at 2,218 rgt -technicals
* CPO prices to average lower at 2,170 rgt/t between April-Dec - analyst
07/04/2015 (Reuters) - Malaysian palm oil futures rose on Monday for a third straight session to reachtheir highest in more than three weeks, lifted by rising crude oil and firm U.S. soyoil prices, traders said.
Oil futures climbed more than $1 a barrel on Monday, after Saudi Arabia raised its prices for crude sales to Asia for the second month running, signalling improved demand in the region.
When markets re-opened after the Easter holiday, Brent crude touched a high of $56.90 a barrel and U.S. crude rose as much as to $50.97.
Higher crude prices could attract interest for palm-based biodiesel.
The benchmark June contract on the Bursa Malaysia Derivatives rose 1.9 percent to 2,233 ringgit ($614) a tonneafter touching 2,250 ringgit, its highest since March 13.
But some traders said a sharp rise in late Monday trade was "abnormal" and the contract lackedfundamental domestic support.
The Malaysian ringgit, which typically curbs buying interest for the ringgit-priced palm as it advances, strengthened to near a five-week peak of 3.6205 per dollar.
"Prices are very much overdone on the higher side for the day, knowing the weakness from the strong ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"We're hoping that our 10- and 15-days exports will provide us a clear price direction."
Total traded volume stood at 46,555 lots of 25 tonnes, above the average 35,000 lots.
Investors are also watching Indonesia's plans to impose levies on its exports of CPO and processed palm oil to fund its biodiesel mandates. The levies, which will come into effect after being signed by President Joko Widodo, may spur some initial demand for crude palm from neighbouring Malaysia.
The U.S. soyoil May contract gained 1.3 percent in late Asian trade, lending support to palm oil, a common food and fuel substitute.
However, analysts say that softening demand for palm oil, alongside another record global soybean harvest, may put pressure on the tropical oil.
"In line with the softer CPO price outlook, we estimate CPO prices from April-Dec 2015 should average lower at 2,170 ringgit per metric tonne in keeping with our 2,200 ringgit full-year forecast," Kenanga Investment Bank said in a note on Monday.
Palm, soy and crude oil prices at 1029 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR5 2240 +62.00 2214 2240 58
MY PALM OIL MAY5 2241 +45.00 2204 2256 5732
MY PALM OIL JUN5 2230 +39.00 2197 2250 24711
CHINA PALM OLEIN SEP5 4660 -2.00 4660 4660 73414
CHINA SOYOIL SEP5 5372 -14.00 5372 5372 73934
CBOT SOY OIL MAY5 31.41 +8.60 30.93 31.52 4540
INDIA PALM OIL APR5 444.70 +8.60 438.40 447.00 1579
INDIA SOYOIL APR5 605.10 +14.85 592.80 605.90 31155
NYMEX CRUDE MAY5 50.65 +1.51 49.47 50.97 35996
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 = 3.6300 Malaysian ringgit)
($1 = 6.1950 Chinese yuan)
($1 = 62.20 Indian rupee)
* Oil up more than $1 after Saudi's Asia price hike
* Palm oil to test resistance at 2,218 rgt -technicals
* CPO prices to average lower at 2,170 rgt/t between April-Dec - analyst
07/04/2015 (Reuters) - Malaysian palm oil futures rose on Monday for a third straight session to reachtheir highest in more than three weeks, lifted by rising crude oil and firm U.S. soyoil prices, traders said.
Oil futures climbed more than $1 a barrel on Monday, after Saudi Arabia raised its prices for crude sales to Asia for the second month running, signalling improved demand in the region.
When markets re-opened after the Easter holiday, Brent crude touched a high of $56.90 a barrel and U.S. crude rose as much as to $50.97.
Higher crude prices could attract interest for palm-based biodiesel.
The benchmark June contract on the Bursa Malaysia Derivatives rose 1.9 percent to 2,233 ringgit ($614) a tonneafter touching 2,250 ringgit, its highest since March 13.
But some traders said a sharp rise in late Monday trade was "abnormal" and the contract lackedfundamental domestic support.
The Malaysian ringgit, which typically curbs buying interest for the ringgit-priced palm as it advances, strengthened to near a five-week peak of 3.6205 per dollar.
"Prices are very much overdone on the higher side for the day, knowing the weakness from the strong ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"We're hoping that our 10- and 15-days exports will provide us a clear price direction."
Total traded volume stood at 46,555 lots of 25 tonnes, above the average 35,000 lots.
Investors are also watching Indonesia's plans to impose levies on its exports of CPO and processed palm oil to fund its biodiesel mandates. The levies, which will come into effect after being signed by President Joko Widodo, may spur some initial demand for crude palm from neighbouring Malaysia.
The U.S. soyoil May contract gained 1.3 percent in late Asian trade, lending support to palm oil, a common food and fuel substitute.
However, analysts say that softening demand for palm oil, alongside another record global soybean harvest, may put pressure on the tropical oil.
"In line with the softer CPO price outlook, we estimate CPO prices from April-Dec 2015 should average lower at 2,170 ringgit per metric tonne in keeping with our 2,200 ringgit full-year forecast," Kenanga Investment Bank said in a note on Monday.
Palm, soy and crude oil prices at 1029 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR5 2240 +62.00 2214 2240 58
MY PALM OIL MAY5 2241 +45.00 2204 2256 5732
MY PALM OIL JUN5 2230 +39.00 2197 2250 24711
CHINA PALM OLEIN SEP5 4660 -2.00 4660 4660 73414
CHINA SOYOIL SEP5 5372 -14.00 5372 5372 73934
CBOT SOY OIL MAY5 31.41 +8.60 30.93 31.52 4540
INDIA PALM OIL APR5 444.70 +8.60 438.40 447.00 1579
INDIA SOYOIL APR5 605.10 +14.85 592.80 605.90 31155
NYMEX CRUDE MAY5 50.65 +1.51 49.47 50.97 35996
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 = 3.6300 Malaysian ringgit)
($1 = 6.1950 Chinese yuan)
($1 = 62.20 Indian rupee)