MARKET DEVELOPMENT
VEGOILS-Palm Pulls up for 3rd Day of Gains, Indonesian Levies in Focus
VEGOILS-Palm Pulls up for 3rd Day of Gains, Indonesian Levies in Focus
(Recasts, updates prices)
* Indonesia finmin to approve new levy on crude palm exports on Tues
* Rapid increase in output may keep prices low - trader
* Palm oil to test support at 2,082 rgt -technicals
15/04/2015 (Reuters) - Malaysian palm oil futures ended higher on Tuesday, reversing some losses from the morning session on anticipation that tax levies from top producer Indonesia will soon be in place.
Indonesia's finance minister will sign a regulation on Tuesday to impose a levy of $50 a tonne on exports of crude palm oil, a senior government official said, bringing the proposal closer to taking full effect. The regulation can only be implemented when approved by President Joko Widodo.
Some investors are hopeful that levies on Indonesian crude palm oil may channel buying interest to neighbouring Malaysia, where the crude grade will be cheaper even with its current 4.5 percent export duty.
"Talks on Indonesia signing the regulation is pushing up prices," said one trader with a foreign commodities brokerage in Kuala Lumpur. "Demand may shift to Malaysia."
The benchmark June contract on the Bursa Malaysia Derivatives exchange was up 0.8 percent to 2,149 ringgit ($581) by Tuesday's close, pulling up from a intraday low of 2,098 ringgit.
Total traded volume stood at 63,766 lots of 25 tonnes, soaring above the usual 35,000 lots.
But concerns over accelerating palm output in the world's biggest growers kept a lid on gains.
In March, crude palm oil production in Malaysia, the second-biggest grower after Indonesia, soared 33.3 percent to 1.49 million tonnes to record its biggest ever month-over-month rise. Indonesian output was forecast to have grown 17 percent to 2.397 million tonnes.
MYPOMP-CPOTT
Surging supplies of palm will add to global edible oil stocks which have swelled thanks to bumper harvests of U.S. and South American soybeans.
"Futures sellers are getting aggressive as big speculators are extending their bearish bets," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari.
"The market is turning to output. With the burdensome end-stocks, prices will be kept low."
In competing vegetable oil markets, the U.S. soyoil May contract rose 0.3 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.
In other markets, crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war.
Palm, soy and crude oil prices at 1021 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR5 0 +0.00 0 0 0
MY PALM OIL MAY5 2162 +20.00 2115 2167 2847
MY PALM OIL JUN5 2149 +18.00 2098 2155 30674
CHINA PALM OLEIN SEP5 4642 -22.00 4632 4686 360574
CHINA SOYOIL SEP5 5432 +4.00 5414 5472 462312
CBOT SOY OIL MAY5 31.12 +0.00 30.95 31.15 7896
INDIA PALM OIL APR5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL APR5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE MAY5 52.45 +0.54 51.83 52.67 29906
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 = 3.6990 Malaysian ringgit)
($1 = 6.2118 Chinese yuan)
($1 = 62.51 Indian rupees)
* Indonesia finmin to approve new levy on crude palm exports on Tues
* Rapid increase in output may keep prices low - trader
* Palm oil to test support at 2,082 rgt -technicals
15/04/2015 (Reuters) - Malaysian palm oil futures ended higher on Tuesday, reversing some losses from the morning session on anticipation that tax levies from top producer Indonesia will soon be in place.
Indonesia's finance minister will sign a regulation on Tuesday to impose a levy of $50 a tonne on exports of crude palm oil, a senior government official said, bringing the proposal closer to taking full effect. The regulation can only be implemented when approved by President Joko Widodo.
Some investors are hopeful that levies on Indonesian crude palm oil may channel buying interest to neighbouring Malaysia, where the crude grade will be cheaper even with its current 4.5 percent export duty.
"Talks on Indonesia signing the regulation is pushing up prices," said one trader with a foreign commodities brokerage in Kuala Lumpur. "Demand may shift to Malaysia."
The benchmark June contract on the Bursa Malaysia Derivatives exchange was up 0.8 percent to 2,149 ringgit ($581) by Tuesday's close, pulling up from a intraday low of 2,098 ringgit.
Total traded volume stood at 63,766 lots of 25 tonnes, soaring above the usual 35,000 lots.
But concerns over accelerating palm output in the world's biggest growers kept a lid on gains.
In March, crude palm oil production in Malaysia, the second-biggest grower after Indonesia, soared 33.3 percent to 1.49 million tonnes to record its biggest ever month-over-month rise. Indonesian output was forecast to have grown 17 percent to 2.397 million tonnes.
MYPOMP-CPOTT
Surging supplies of palm will add to global edible oil stocks which have swelled thanks to bumper harvests of U.S. and South American soybeans.
"Futures sellers are getting aggressive as big speculators are extending their bearish bets," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari.
"The market is turning to output. With the burdensome end-stocks, prices will be kept low."
In competing vegetable oil markets, the U.S. soyoil May contract rose 0.3 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.
In other markets, crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a civil war.
Palm, soy and crude oil prices at 1021 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR5 0 +0.00 0 0 0
MY PALM OIL MAY5 2162 +20.00 2115 2167 2847
MY PALM OIL JUN5 2149 +18.00 2098 2155 30674
CHINA PALM OLEIN SEP5 4642 -22.00 4632 4686 360574
CHINA SOYOIL SEP5 5432 +4.00 5414 5472 462312
CBOT SOY OIL MAY5 31.12 +0.00 30.95 31.15 7896
INDIA PALM OIL APR5 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL APR5 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE MAY5 52.45 +0.54 51.83 52.67 29906
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 = 3.6990 Malaysian ringgit)
($1 = 6.2118 Chinese yuan)
($1 = 62.51 Indian rupees)