MARKET DEVELOPMENT
VEGOILS-Palm Falls for Fourth Day on Stronger Ringgit, Bigger Stocks
VEGOILS-Palm Falls for Fourth Day on Stronger Ringgit, Bigger Stocks
* Malaysian palm stocks climb to 6-month high of 2.24 mln T
* Demand for palm seen cooling in June - analyst
* Ringgit rises to 3.7310 per U.S. dollar
12/06/2015 (Reuters) - Malaysian palm oil futures edged down in light trade on Thursday, stretching their losing streak into a fourth day due to a rise in the ringgit and higher stocks in the No.2 grower.
Data from regulator the Malaysian Palm Oil Board showed palm oil stocks last month swelled to their highest since November to stand at 2.24 million tonnes, overturning expectations that robust export demand would dent inventories.
By the midday break, the August palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.2 percent to 2,287 ringgit ($612.97) a tonne.
"The reliable support at 2,320 ringgit gave way and now it is checking the next support at 2,280 ringgit, which may break soon," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that a sell signal may be triggered if the price falls to 2,279 ringgit.
However, traded volume was thin at 10,274 lots of 25 tonnes each, below the more usual 12,500 lots.
Analysts say the pace of shipments may cool in June ahead of the Muslim Ramadan festival that starts in the middle of the month.
Kenanga Investment Bank said "we expect the growth momentum to moderate this month as the bulk of stocking-up activity ahead of the Ramadan celebrations is likely to be completed".
"The higher soybean oil to CPO premium could serve as a demand catalyst, but we expect this to be temporary due to the ample supply of soybeans in the market," the research house added.
Cargo surveyors on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose about 2 percent to between 468,975 and 473,307 tonnes compared to the May 1-10 period, signalling a slowdown in the surge in buying.
The Malaysian ringgit rose for the third session on Thursday to trade at 3.7310 per dollar by 0451 GMT. On Monday the currency had slumped to 3.7680, the weakest in nine years.
In other markets, crude oil futures fell as the World Bank cut its global economic growth forecast, ending a two-day rally triggered by a sharp U.S. inventory drawdown.
In competing vegetable oil markets, the U.S. July soyoil contract rose 0.3 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.2 percent.
Palm, soy and crude oil prices at 0519 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +0.00 0 2284 0
MY PALM OIL JUL5 2282 -5.00 2276 2287 317
MY PALM OIL AUG5 2287 -4.00 2280 2294 6097
CHINA PALM OLEIN JAN6 5246 -18.00 5214 5286 655382
CHINA SOYOIL SEP5 5748 +12.00 5736 5782 285448
CBOT SOY OIL JUL5 33.99 -2.30 33.87 34.04 2152
INDIA PALM OIL JUN5 455.10 -2.30 453.70 457.80 294
INDIA SOYOIL JUN5 606.30 -1.25 606.00 606.80 2060
NYMEX CRUDE JUL5 61.21 -0.22 61.05 61.24 6260
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 = 3.7310 ringgit)
($1 = 6.2068 Chinese yuan)
($1 = 63.84 Indian rupees)
* Demand for palm seen cooling in June - analyst
* Ringgit rises to 3.7310 per U.S. dollar
12/06/2015 (Reuters) - Malaysian palm oil futures edged down in light trade on Thursday, stretching their losing streak into a fourth day due to a rise in the ringgit and higher stocks in the No.2 grower.
Data from regulator the Malaysian Palm Oil Board showed palm oil stocks last month swelled to their highest since November to stand at 2.24 million tonnes, overturning expectations that robust export demand would dent inventories.
By the midday break, the August palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.2 percent to 2,287 ringgit ($612.97) a tonne.
"The reliable support at 2,320 ringgit gave way and now it is checking the next support at 2,280 ringgit, which may break soon," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that a sell signal may be triggered if the price falls to 2,279 ringgit.
However, traded volume was thin at 10,274 lots of 25 tonnes each, below the more usual 12,500 lots.
Analysts say the pace of shipments may cool in June ahead of the Muslim Ramadan festival that starts in the middle of the month.
Kenanga Investment Bank said "we expect the growth momentum to moderate this month as the bulk of stocking-up activity ahead of the Ramadan celebrations is likely to be completed".
"The higher soybean oil to CPO premium could serve as a demand catalyst, but we expect this to be temporary due to the ample supply of soybeans in the market," the research house added.
Cargo surveyors on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose about 2 percent to between 468,975 and 473,307 tonnes compared to the May 1-10 period, signalling a slowdown in the surge in buying.
The Malaysian ringgit rose for the third session on Thursday to trade at 3.7310 per dollar by 0451 GMT. On Monday the currency had slumped to 3.7680, the weakest in nine years.
In other markets, crude oil futures fell as the World Bank cut its global economic growth forecast, ending a two-day rally triggered by a sharp U.S. inventory drawdown.
In competing vegetable oil markets, the U.S. July soyoil contract rose 0.3 percent in early Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.2 percent.
Palm, soy and crude oil prices at 0519 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 0 +0.00 0 2284 0
MY PALM OIL JUL5 2282 -5.00 2276 2287 317
MY PALM OIL AUG5 2287 -4.00 2280 2294 6097
CHINA PALM OLEIN JAN6 5246 -18.00 5214 5286 655382
CHINA SOYOIL SEP5 5748 +12.00 5736 5782 285448
CBOT SOY OIL JUL5 33.99 -2.30 33.87 34.04 2152
INDIA PALM OIL JUN5 455.10 -2.30 453.70 457.80 294
INDIA SOYOIL JUN5 606.30 -1.25 606.00 606.80 2060
NYMEX CRUDE JUL5 61.21 -0.22 61.05 61.24 6260
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 = 3.7310 ringgit)
($1 = 6.2068 Chinese yuan)
($1 = 63.84 Indian rupees)