MARKET DEVELOPMENT
VEGOILS-Palm Oil Rises for Third Session on Forecasts of Lower End-Feb Inventories
VEGOILS-Palm Oil Rises for Third Session on Forecasts of Lower End-Feb Inventories
* Technical correction also lends support to palm
* Palm shipments' 17-18 pct fall factored in -trader (Updates latest prices, quote)
01/03/2016 (Reuters) - Malaysian palm oil futuresrose on Monday, extending gains for a third session, as tradersexpect to see inventories dip below the 2 million tonne mark atthe end of February.
Traders said that palm also gained on a technical correctiondespite lower export data, following a five-day fall last week.Palm futures had lost 1.7 percent last week.
The palm oil contract for May delivery on theBursa Malaysia Derivatives Exchange was up 0.2 percent at 2,548ringgit ($606.67) per tonne at the close.
Traded volume stood at 31,134 lots of 25 tonnes each.
"Traders are estimating end-stocks to dip below two milliontonnes in the next MPOB report," said a trader from a brokeragefirm in Kuala Lumpur, referring to February data from governmentbody the Malaysian Palm Oil Board (MPOB).
"This is keeping the market cautious albeit worseningexports. We also have the weak ringgit to support prices."
Palm was supported by a weakening ringgit in earlytrade on Monday. Malaysia's ringgit, the currency palm oil istraded in, rebounded in the evening to strenghten 0.2 percent toreach 4.2000 against the dollar. A weaker ringgit makes palm oilcheaper for holders of foreign currencies.
Malaysia's inventories are seen falling in line with theseasonal trend and due to the dry weather effects of the El Ninowhich lowers palm's fresh fruit yields. January stockpiles stoodat 2.3 million tonnes, down from an all time high of 2.9 milliontonnes recorded in November last year. (MYPOMS-TPO)
Export data from cargo surveyors Intertek Testing Servicesand Societe Generale de Surveillance showed that palm oilshipments fell 17-18 percent for the full month of February froma month ago. Malaysian palm oil shipments have been falling inrecent weeks as demand for the tropical oil from top consumersChina, India and Europe wane.
Palm oil is expected to test resistance at 2,576 ringgit pertonne, with a good chance of breaking above this level andrising further into a range of 2,597-2,618 ringgit, said WangTao, a Reuters market analyst for commodities and energytechnicals.
In competing vegetable oil markets, the May soybean oilcontract on the Dalian Commodity Exchange gained 0.4percent, while the Chicago soyoil contract fell slightlyby 0.03 percent.
($1 = 4.2000 ringgit)
($1 = 68.4650 Indian rupees)
($1 = 6.5520 Chinese yuan)
01/03/2016 (Reuters) - Malaysian palm oil futuresrose on Monday, extending gains for a third session, as tradersexpect to see inventories dip below the 2 million tonne mark atthe end of February.
Traders said that palm also gained on a technical correctiondespite lower export data, following a five-day fall last week.Palm futures had lost 1.7 percent last week.
The palm oil contract for May delivery on theBursa Malaysia Derivatives Exchange was up 0.2 percent at 2,548ringgit ($606.67) per tonne at the close.
Traded volume stood at 31,134 lots of 25 tonnes each.
"Traders are estimating end-stocks to dip below two milliontonnes in the next MPOB report," said a trader from a brokeragefirm in Kuala Lumpur, referring to February data from governmentbody the Malaysian Palm Oil Board (MPOB).
"This is keeping the market cautious albeit worseningexports. We also have the weak ringgit to support prices."
Palm was supported by a weakening ringgit in earlytrade on Monday. Malaysia's ringgit, the currency palm oil istraded in, rebounded in the evening to strenghten 0.2 percent toreach 4.2000 against the dollar. A weaker ringgit makes palm oilcheaper for holders of foreign currencies.
Malaysia's inventories are seen falling in line with theseasonal trend and due to the dry weather effects of the El Ninowhich lowers palm's fresh fruit yields. January stockpiles stoodat 2.3 million tonnes, down from an all time high of 2.9 milliontonnes recorded in November last year. (MYPOMS-TPO)
Export data from cargo surveyors Intertek Testing Servicesand Societe Generale de Surveillance showed that palm oilshipments fell 17-18 percent for the full month of February froma month ago. Malaysian palm oil shipments have been falling inrecent weeks as demand for the tropical oil from top consumersChina, India and Europe wane.
Palm oil is expected to test resistance at 2,576 ringgit pertonne, with a good chance of breaking above this level andrising further into a range of 2,597-2,618 ringgit, said WangTao, a Reuters market analyst for commodities and energytechnicals.
In competing vegetable oil markets, the May soybean oilcontract on the Dalian Commodity Exchange gained 0.4percent, while the Chicago soyoil contract fell slightlyby 0.03 percent.
($1 = 4.2000 ringgit)
($1 = 68.4650 Indian rupees)
($1 = 6.5520 Chinese yuan)