MARKET DEVELOPMENT
Malaysian Palm Oil Price Closes Down, Comes Off 2-Month High
Malaysian Palm Oil Price Closes Down, Comes Off 2-Month High
17/09/2015 (Reuters) - Malaysian palm oil futures reversed earlier gains to a two-month top and closed down 2 percent on Tuesday, hurt by a technical correction following a sharp rally in the past three weeks.
The benchmark November palm oil contract on the Bursa Malaysia Derivatives Exchange closed at 2,148 ringgit ($498.95) a tonne, off the day's high of 2,207 ringgit, its loftiest since July 22.
Traded volume stood at 45,911 lots of 25 tonnes each, above the average 35,000 lots usually traded in a day.
The market often eases ahead of a change of the futures contract forward month, said a trader based in Kuala Lumpur.
"The time is also right for some adjustments, as the market is overbought," the trader added.
Prices have risen nearly 8 percent so far this month, the most since September last year, spurred by strong exports.
Malaysian palm products exports rose 6.9 percent during the first half of September from a month earlier, cargo surveyor Intertek Testing Services said on Tuesday.
Palm oil prices are now targeting 2,244 ringgit, as they have broken a resistance at 2,171 ringgit, said Reuters market analyst Wang Tao.
In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange lost 0.1 percent, while the U.S. December soyoil contract was down 0.5 percent.
Crude oil prices were supported by lower U.S. inventories and production on Tuesday, though concerns over weaker Asian demand kept price levels in check.
Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP5 2050 -31.00 2050 2050 26
MY PALM OIL OCT5 2106 -20.00 2100 2130 1027
MY PALM OIL NOV5 2147 -45.00 2146 2207 21737
CHINA PALM OLEIN JAN6 4292 -22.00 4290 4410 1373330
CHINA SOYOIL JAN6 5402 -6.00 5390 5492 807730
CBOT SOY OIL DEC5 27.00 -1.60 26.96 27.34 7896
INDIA PALM OIL SEP5 391.80 -1.60 389.60 392.30 1279
INDIA SOYOIL OCT5 564.00 -1.90 562.60 565.80 18860
NYMEX CRUDE OCT5 44.29 +0.29 44.03 44.58 26972
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 = 4.3050 ringgit)
($1 = 66.3900 Indian rupees)
($1 = 6.3685 Chinese yuan)
The benchmark November palm oil contract on the Bursa Malaysia Derivatives Exchange closed at 2,148 ringgit ($498.95) a tonne, off the day's high of 2,207 ringgit, its loftiest since July 22.
Traded volume stood at 45,911 lots of 25 tonnes each, above the average 35,000 lots usually traded in a day.
The market often eases ahead of a change of the futures contract forward month, said a trader based in Kuala Lumpur.
"The time is also right for some adjustments, as the market is overbought," the trader added.
Prices have risen nearly 8 percent so far this month, the most since September last year, spurred by strong exports.
Malaysian palm products exports rose 6.9 percent during the first half of September from a month earlier, cargo surveyor Intertek Testing Services said on Tuesday.
Palm oil prices are now targeting 2,244 ringgit, as they have broken a resistance at 2,171 ringgit, said Reuters market analyst Wang Tao.
In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange lost 0.1 percent, while the U.S. December soyoil contract was down 0.5 percent.
Crude oil prices were supported by lower U.S. inventories and production on Tuesday, though concerns over weaker Asian demand kept price levels in check.
Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP5 2050 -31.00 2050 2050 26
MY PALM OIL OCT5 2106 -20.00 2100 2130 1027
MY PALM OIL NOV5 2147 -45.00 2146 2207 21737
CHINA PALM OLEIN JAN6 4292 -22.00 4290 4410 1373330
CHINA SOYOIL JAN6 5402 -6.00 5390 5492 807730
CBOT SOY OIL DEC5 27.00 -1.60 26.96 27.34 7896
INDIA PALM OIL SEP5 391.80 -1.60 389.60 392.30 1279
INDIA SOYOIL OCT5 564.00 -1.90 562.60 565.80 18860
NYMEX CRUDE OCT5 44.29 +0.29 44.03 44.58 26972
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 = 4.3050 ringgit)
($1 = 66.3900 Indian rupees)
($1 = 6.3685 Chinese yuan)