MARKET DEVELOPMENT
VEGOILS-Palm Snaps 5-day Decline but China Outlook Caps Gains
VEGOILS-Palm Snaps 5-day Decline but China Outlook Caps Gains
* Prices hit 2,150 ringgit in early trade
* MPOB data due early August expected to show excess stocks
30/07/2015 (Reuters) - Malaysian palm oil futures rebounded on Wednesday following gains overnight in U.S. soy oil, snapping five sessions of declines, although concerns over the outlook for Chinese demand reversed most of the early gains.
"(Palm oil) prices were pulled up a little bit because yesterday the Chicago Board of Trade soybean oil prices were higher," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"It was more of a profit-taking morning than actual buying (while) looking at a better picture, (and) that's why the market came off," the trader added, noting he expected prices to decline further in the afternoon session.
By the midday break, benchmark palm oil for October on the Bursa Malaysia Derivatives Exchange had gained 0.19 percent to 2,135 ringgit ($559.93) a tonne. On Tuesday, the contract hit 2,115 ringgit, its lowest since April 30.
Total traded volume on Wednesday stood at 22,631 lots of 25 tonnes each, well above the roughly 13,500 lots usually traded by midday.
Recent turmoil in Chinese stock markets would impact demand for palm oil, the trader said, referring to one of the world's top importers of the edible oil.
"There are people who are also involved in the palm oil trade whose money is being eroded there."
With declining exports from Malaysia in July expected to outweigh declines in production over the Muslim holiday period, Malaysian Palm Oil Board closing stocks and production data due out on August 10
could show excess stocks, the trader said.
"The market is depressed here trying to get a foothold for new demand."
In competing markets, oil prices fell in Asian trade on Wednesday as concerns over global oversupply outweighed the impact of a likely larger than expected draw in U.S. crude stocks and a weakening dollar.
The U.S. soyoil contract for August slipped 0.59 percent in morning Asian trade, reversing a 1.8 percent gain overnight.
Meanwhile, the most active January soybean oil contract on the Dalian Commodity Exchange edged up 0.77 percent snapping a four-day selloff, and Dalian RBD palm oil for September delivery gained 1.15 percent.
Palm, soy and crude oil prices at 0527 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG5 2136 -2.00 2136 2146 104
MY PALM OIL SEP5 2136 +1.00 2135 2152 1393
MY PALM OIL OCT5 2135 +4.00 2131 2150 9359
CHINA PALM OLEIN JAN6 4774 +38.00 4752 4814 415286
CHINA SOYOIL JAN6 5502 +42.00 5470 5542 434010
CBOT SOY OIL DEC5 30.90 -1.20 30.88 31.12 2166
INDIA PALM OIL JUL5 423.50 -1.20 423.10 424.50 88
INDIA SOYOIL AUG5 568.35 -0.60 567.50 569.50 5130
NYMEX CRUDE SEP5 47.79 -0.19 47.66 47.98 5655
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 = 3.8130 ringgit)
($1 = 63.9000 Indian rupees)
($1 = 6.2085 Chinese yuan)
* MPOB data due early August expected to show excess stocks
30/07/2015 (Reuters) - Malaysian palm oil futures rebounded on Wednesday following gains overnight in U.S. soy oil, snapping five sessions of declines, although concerns over the outlook for Chinese demand reversed most of the early gains.
"(Palm oil) prices were pulled up a little bit because yesterday the Chicago Board of Trade soybean oil prices were higher," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"It was more of a profit-taking morning than actual buying (while) looking at a better picture, (and) that's why the market came off," the trader added, noting he expected prices to decline further in the afternoon session.
By the midday break, benchmark palm oil for October on the Bursa Malaysia Derivatives Exchange had gained 0.19 percent to 2,135 ringgit ($559.93) a tonne. On Tuesday, the contract hit 2,115 ringgit, its lowest since April 30.
Total traded volume on Wednesday stood at 22,631 lots of 25 tonnes each, well above the roughly 13,500 lots usually traded by midday.
Recent turmoil in Chinese stock markets would impact demand for palm oil, the trader said, referring to one of the world's top importers of the edible oil.
"There are people who are also involved in the palm oil trade whose money is being eroded there."
With declining exports from Malaysia in July expected to outweigh declines in production over the Muslim holiday period, Malaysian Palm Oil Board closing stocks and production data due out on August 10
could show excess stocks, the trader said.
"The market is depressed here trying to get a foothold for new demand."
In competing markets, oil prices fell in Asian trade on Wednesday as concerns over global oversupply outweighed the impact of a likely larger than expected draw in U.S. crude stocks and a weakening dollar.
The U.S. soyoil contract for August slipped 0.59 percent in morning Asian trade, reversing a 1.8 percent gain overnight.
Meanwhile, the most active January soybean oil contract on the Dalian Commodity Exchange edged up 0.77 percent snapping a four-day selloff, and Dalian RBD palm oil for September delivery gained 1.15 percent.
Palm, soy and crude oil prices at 0527 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG5 2136 -2.00 2136 2146 104
MY PALM OIL SEP5 2136 +1.00 2135 2152 1393
MY PALM OIL OCT5 2135 +4.00 2131 2150 9359
CHINA PALM OLEIN JAN6 4774 +38.00 4752 4814 415286
CHINA SOYOIL JAN6 5502 +42.00 5470 5542 434010
CBOT SOY OIL DEC5 30.90 -1.20 30.88 31.12 2166
INDIA PALM OIL JUL5 423.50 -1.20 423.10 424.50 88
INDIA SOYOIL AUG5 568.35 -0.60 567.50 569.50 5130
NYMEX CRUDE SEP5 47.79 -0.19 47.66 47.98 5655
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 = 3.8130 ringgit)
($1 = 63.9000 Indian rupees)
($1 = 6.2085 Chinese yuan)