MARKET DEVELOPMENT
VEGOILS-Palm Eases As Flat Exports Stoke Uncertainty Over Demand
VEGOILS-Palm Eases As Flat Exports Stoke Uncertainty Over Demand
* Malaysia's June 1-20 palm oil exports rise 0.4 pct -ITS
* Demand for palm uncertain in final week of June - traders
* Indian 2014/15 edible oil imports seen up 12 pct at 13 mln T - Solvent Extractors' Association
23/06/2015 (Reuters) - Malaysian palm oil futures eased in thin trade on Monday as the ringgit gained and lacklustre exports in the first 20 days of the month signalled dwindling demand for the edible oil.
Exports of Malaysian palm products for June 1-20 inched up 0.4 percent to 1,074,410 tonnes from 1,070,282 tonnes a month before, a report from cargo surveyor Intertek Testing Services showed, as India and China scaled back purchases.
"Last month exports were very strong. We don't know if demand will fade away, especially in the last 10 days of this month. It's very uncertain," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The trader added that production would need to ease in order to reduce stockpiles, which have swollen to a six-month high of 2.24 million tonnes.
Market participants expect crude palm oil output in Malaysia, the world's No.2 grower, to weaken during the Muslim holy month of Ramadan and the Eid al-Fitr festival as plantation workers go on holiday.
By the midday break, the September palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.3 percent to 2,230 ringgit ($599) a tonne.
Prices were range-bound between 2,229 and 2,245 ringgit and trading was light as Chinese markets were closed for a holiday.
Total traded volume stood at only 6,897 lots of 25 tonnes each, about half the usual 12,500 lots.
"The market is very lethargic because of China's holiday. Many people are not in the market," the Kuala Lumpur trader said.
Technicals show palm oil prices will probably see a target of 2,216 ringgit but face resistance at 2,250 ringgit, according to Reuters market analyst Wang Tao.
The Malaysian ringgit gained 0.4 percent to 3.7210 per U.S. dollar on Monday, making the ringgit-priced palm
feedstock more expensive for overseas customers.
Palm's top consumer, India, may import 13 million tonnes of edible oil in the 2014/15 marketing year to October, 12 percent more than the previous year as drought has hurt domestic soybean crops and cheap palm prices have stoked buying appetite, said Pravin Lunkad, president of the Solvent Extractors' Association
of India.
India, the world's biggest edible oil importer, mainly buys palm oil from Indonesia and Malaysia, along with soyoil from Argentina and Brazil.
In other markets, oil prices were unchanged in Asian trade after initially falling on concern about a eurozone meeting later in the day on the Greek debt crisis. Worries about oversupply still weighed on the market.
The U.S. July soyoil contract lost 0.1 percent in early Asian trade. The Dalian Commodity Exchange is closed for the Chinese holiday and will reopen on Tuesday.
Palm, soy and crude oil prices at 0510 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL5 2224 -8.00 2223 2242 337
MY PALM OIL AUG5 2227 -9.00 2227 2245 2090
MY PALM OIL SEP5 2230 -7.00 2229 2245 3273
CHINA PALM OLEIN JAN6 0 +0.00 0 0 0
CHINA SOYOIL JAN6 0 +0.00 0 0 0
CBOT SOY OIL JUL5 32.53 -2.00 32.46 32.66 1334
INDIA PALM OIL JUN5 448.20 -2.00 448.20 450.00 132
INDIA SOYOIL AUG5 577.95 -3.85 577.50 580.50 6875
NYMEX CRUDE JUL5 59.59 -0.02 59.24 59.68 429
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 = 3.7200 ringgit)
($1 = 6.2095 Chinese yuan)
($1 = 63.48 Indian rupees)
* Demand for palm uncertain in final week of June - traders
* Indian 2014/15 edible oil imports seen up 12 pct at 13 mln T - Solvent Extractors' Association
23/06/2015 (Reuters) - Malaysian palm oil futures eased in thin trade on Monday as the ringgit gained and lacklustre exports in the first 20 days of the month signalled dwindling demand for the edible oil.
Exports of Malaysian palm products for June 1-20 inched up 0.4 percent to 1,074,410 tonnes from 1,070,282 tonnes a month before, a report from cargo surveyor Intertek Testing Services showed, as India and China scaled back purchases.
"Last month exports were very strong. We don't know if demand will fade away, especially in the last 10 days of this month. It's very uncertain," said a trader with a foreign commodities brokerage in Kuala Lumpur.
The trader added that production would need to ease in order to reduce stockpiles, which have swollen to a six-month high of 2.24 million tonnes.
Market participants expect crude palm oil output in Malaysia, the world's No.2 grower, to weaken during the Muslim holy month of Ramadan and the Eid al-Fitr festival as plantation workers go on holiday.
By the midday break, the September palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.3 percent to 2,230 ringgit ($599) a tonne.
Prices were range-bound between 2,229 and 2,245 ringgit and trading was light as Chinese markets were closed for a holiday.
Total traded volume stood at only 6,897 lots of 25 tonnes each, about half the usual 12,500 lots.
"The market is very lethargic because of China's holiday. Many people are not in the market," the Kuala Lumpur trader said.
Technicals show palm oil prices will probably see a target of 2,216 ringgit but face resistance at 2,250 ringgit, according to Reuters market analyst Wang Tao.
The Malaysian ringgit gained 0.4 percent to 3.7210 per U.S. dollar on Monday, making the ringgit-priced palm
feedstock more expensive for overseas customers.
Palm's top consumer, India, may import 13 million tonnes of edible oil in the 2014/15 marketing year to October, 12 percent more than the previous year as drought has hurt domestic soybean crops and cheap palm prices have stoked buying appetite, said Pravin Lunkad, president of the Solvent Extractors' Association
of India.
India, the world's biggest edible oil importer, mainly buys palm oil from Indonesia and Malaysia, along with soyoil from Argentina and Brazil.
In other markets, oil prices were unchanged in Asian trade after initially falling on concern about a eurozone meeting later in the day on the Greek debt crisis. Worries about oversupply still weighed on the market.
The U.S. July soyoil contract lost 0.1 percent in early Asian trade. The Dalian Commodity Exchange is closed for the Chinese holiday and will reopen on Tuesday.
Palm, soy and crude oil prices at 0510 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL5 2224 -8.00 2223 2242 337
MY PALM OIL AUG5 2227 -9.00 2227 2245 2090
MY PALM OIL SEP5 2230 -7.00 2229 2245 3273
CHINA PALM OLEIN JAN6 0 +0.00 0 0 0
CHINA SOYOIL JAN6 0 +0.00 0 0 0
CBOT SOY OIL JUL5 32.53 -2.00 32.46 32.66 1334
INDIA PALM OIL JUN5 448.20 -2.00 448.20 450.00 132
INDIA SOYOIL AUG5 577.95 -3.85 577.50 580.50 6875
NYMEX CRUDE JUL5 59.59 -0.02 59.24 59.68 429
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 = 3.7200 ringgit)
($1 = 6.2095 Chinese yuan)
($1 = 63.48 Indian rupees)