MARKET DEVELOPMENT
VEGOILS-Palm Oil Hits 1-Month High After Indonesia Signs Export Levy
VEGOILS-Palm Oil Hits 1-Month High After Indonesia Signs Export Levy
* Price touches 2,200 ringgit in early trade
* Indonesia palm export levy approved, effective 3rd week of May
* Palm oil targets 2,235 ringgit -technicals
07/05/2015 (Reuters) - Malaysian palm oil futures rose for a third day on Wednesday to touch their highest level in a month after a jump in overseas soy markets and as investors covered short positions after Indonesia set a palm export levy to fund biodiesel subsidies.
Indonesian President Joko Widodo has signed a regulation requiring exporters to pay a levy of $50 per tonne of crude palm oil and $30 for processed palm oil product shipments, an energy ministry official said on Wednesday.
The regulation will take effect by the third week of May at the latest, the chief economic minister said.
"It's a rally towards 2,200 ringgit - Indonesia has just signed the levy," said a palm trader with a local commodities brokerage in Kuala Lumpur. "There's a technical buy up ... All this is poised to push prices further to test the 2,200 ringgit."
By the midday break, the benchmark July contract on the Bursa Malaysia Derivatives exchange had inched up 1.7 percent to 2,194 ringgit ($614) a tonne. Prices briefly touched 2,200 ringgit in morning trade, their highest since April 8.
Total traded volume stood at 22,103 lots of 25 tonnes each, well above the usual 12,500 lots.
Palm typically tracks soyoil, a common food and fuel substitute. The U.S. July soyoil contract rose 1 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent.
"The market is flying - look at how soybean oil is rallying," said a second palm trader in Malaysia.
"We're trying to move according to the Dalian which is very strong," the trader said, adding that a rally in Chinese palm olein prices also underpinned benchmark prices. The September contract for palm olein on the Dalian exchange had surged 2.8 percent to 5,182 yuan by 0605 GMT.
On the technical front, palm oil is expected to break resistance at 2,196 ringgit per tonne and rise to the next resistance at 2,235 ringgit, as indicated by a Fibonacci retracement analysis, according to Reuters market analyst Wang Tao.
Crude oil rose more than $1 to fresh 2015 highs, continuing a month-long rally that has been supported by a weaker dollar and a disruption to exports from Libya.
Palm, soy and crude oil prices at 0644 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2157 +21.00 2130 2158 25
MY PALM OIL JUN5 2199 +40.00 2171 2202 1589
MY PALM OIL JUL5 2194 +37.00 2169 2200 13303
CHINA PALM OLEIN SEP5 5158 +120.00 5056 5206 1303012
CHINA SOYOIL SEP5 5944 +72.00 5892 5988 1349142
CBOT SOY OIL JUL5 33.37 +4.60 33.06 33.48 6471
INDIA PALM OIL MAY5 452.90 +4.60 448.60 453.90 1162
INDIA SOYOIL JUN5 602.25 -0.20 599.90 605.00 26430
NYMEX CRUDE JUN5 61.58 +1.18 60.62 61.69 19546
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 = 3.5730 Malaysian ringgit)
($1 = 6.1971 Chinese yuan)
($1 = 63.56 Indian rupees)
* Indonesia palm export levy approved, effective 3rd week of May
* Palm oil targets 2,235 ringgit -technicals
07/05/2015 (Reuters) - Malaysian palm oil futures rose for a third day on Wednesday to touch their highest level in a month after a jump in overseas soy markets and as investors covered short positions after Indonesia set a palm export levy to fund biodiesel subsidies.
Indonesian President Joko Widodo has signed a regulation requiring exporters to pay a levy of $50 per tonne of crude palm oil and $30 for processed palm oil product shipments, an energy ministry official said on Wednesday.
The regulation will take effect by the third week of May at the latest, the chief economic minister said.
"It's a rally towards 2,200 ringgit - Indonesia has just signed the levy," said a palm trader with a local commodities brokerage in Kuala Lumpur. "There's a technical buy up ... All this is poised to push prices further to test the 2,200 ringgit."
By the midday break, the benchmark July contract on the Bursa Malaysia Derivatives exchange had inched up 1.7 percent to 2,194 ringgit ($614) a tonne. Prices briefly touched 2,200 ringgit in morning trade, their highest since April 8.
Total traded volume stood at 22,103 lots of 25 tonnes each, well above the usual 12,500 lots.
Palm typically tracks soyoil, a common food and fuel substitute. The U.S. July soyoil contract rose 1 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent.
"The market is flying - look at how soybean oil is rallying," said a second palm trader in Malaysia.
"We're trying to move according to the Dalian which is very strong," the trader said, adding that a rally in Chinese palm olein prices also underpinned benchmark prices. The September contract for palm olein on the Dalian exchange had surged 2.8 percent to 5,182 yuan by 0605 GMT.
On the technical front, palm oil is expected to break resistance at 2,196 ringgit per tonne and rise to the next resistance at 2,235 ringgit, as indicated by a Fibonacci retracement analysis, according to Reuters market analyst Wang Tao.
Crude oil rose more than $1 to fresh 2015 highs, continuing a month-long rally that has been supported by a weaker dollar and a disruption to exports from Libya.
Palm, soy and crude oil prices at 0644 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY5 2157 +21.00 2130 2158 25
MY PALM OIL JUN5 2199 +40.00 2171 2202 1589
MY PALM OIL JUL5 2194 +37.00 2169 2200 13303
CHINA PALM OLEIN SEP5 5158 +120.00 5056 5206 1303012
CHINA SOYOIL SEP5 5944 +72.00 5892 5988 1349142
CBOT SOY OIL JUL5 33.37 +4.60 33.06 33.48 6471
INDIA PALM OIL MAY5 452.90 +4.60 448.60 453.90 1162
INDIA SOYOIL JUN5 602.25 -0.20 599.90 605.00 26430
NYMEX CRUDE JUN5 61.58 +1.18 60.62 61.69 19546
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 = 3.5730 Malaysian ringgit)
($1 = 6.1971 Chinese yuan)
($1 = 63.56 Indian rupees)