MARKET DEVELOPMENT
VEGOILS-Palm Oil Falls Tracking Competing Oil, Weak Demand
VEGOILS-Palm Oil Falls Tracking Competing Oil, Weak Demand
* Palm hits 2,632 rgt/T before closing lower
* Market requires demand to sustain price rise -trader
(Updates latest prices, quotes)
15/03/2016 (Reuters) - Malaysian palm oil futures fell on Monday, tracking competing oils and on slow export demand, after rising to their highest level in a month in early trade, lifted by last week's forecasts of slowing output.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange dropped 0.6 percent to close at 2,593 ringgit ($633) per tonne, after hitting a one-month high of 2,632 ringgit per tonne earlier in the day. Trade volumes stood at 42,939 lots of 25 tonnes each on Monday.
"The market fell on crude oil and U.S. soyoil easing ... Export estimates suggest a slowdown," said a trader from Kuala Lumpur. "There's also technical selling on an overbought situation."
Palm prices had gained last week after experts at an industry conference forecast that palm would trade between 2,700-3,000 ringgit per tonne by June as a crop damaging El Nino impacts yields and lowers annual growth output. Global output is seen falling by 2-3 million tonnes in 2016.
Another trader said the market was earlier supported by the bullish price sentiment, but it later fell on slowing demand.
"I feel the market has to correct as it has been artificially pushed up. The main key factor is demand. If real demand comes in, then prices can sustain," he said.
Export data from cargo surveyors showed large jumps in shipments over the first ten days of March from the corresponding period a month ago, but traders said demand is still slow as the numbers were measured from a low base in February.
Oil fell around 2 percent on Monday, dipping below the $40 mark, after Iran dashed hopes for a coordinated production freeze.
In a competing vegetable oil market, May soybean oil on the Dalian Commodity Exchange and the Chicago soyoil contract both fell 0.3 percent.
Palm, soy and crude oil prices at 1028 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2525 -24.00 2525 2562 103
MY PALM OIL APR6 2575 -20.00 2573 2614 1178
MY PALM OIL MAY6 2593 -15.00 2593 2632 18025
CHINA PALM OLEIN MAY6 5144 +42.00 5130 5214 697624
CHINA SOYOIL SEP6 5884 -18.00 5882 5992 956272
CBOT SOY OIL MAY6 32.04 -1.70 31.95 32.33 6884
INDIA PALM OIL MAR6 505.00 -1.70 503.20 508.3 984
INDIA SOYOIL MAR6 612 -0.45 612 614.5 6660
NYMEX CRUDE APR6 37.84 -0.66 37.55 38.77 51723
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 = 4.1010 ringgit)
($1 = 67.0500 Indian rupees)
($1 = 6.4942 Chinese yuan)
* Market requires demand to sustain price rise -trader
(Updates latest prices, quotes)
15/03/2016 (Reuters) - Malaysian palm oil futures fell on Monday, tracking competing oils and on slow export demand, after rising to their highest level in a month in early trade, lifted by last week's forecasts of slowing output.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange dropped 0.6 percent to close at 2,593 ringgit ($633) per tonne, after hitting a one-month high of 2,632 ringgit per tonne earlier in the day. Trade volumes stood at 42,939 lots of 25 tonnes each on Monday.
"The market fell on crude oil and U.S. soyoil easing ... Export estimates suggest a slowdown," said a trader from Kuala Lumpur. "There's also technical selling on an overbought situation."
Palm prices had gained last week after experts at an industry conference forecast that palm would trade between 2,700-3,000 ringgit per tonne by June as a crop damaging El Nino impacts yields and lowers annual growth output. Global output is seen falling by 2-3 million tonnes in 2016.
Another trader said the market was earlier supported by the bullish price sentiment, but it later fell on slowing demand.
"I feel the market has to correct as it has been artificially pushed up. The main key factor is demand. If real demand comes in, then prices can sustain," he said.
Export data from cargo surveyors showed large jumps in shipments over the first ten days of March from the corresponding period a month ago, but traders said demand is still slow as the numbers were measured from a low base in February.
Oil fell around 2 percent on Monday, dipping below the $40 mark, after Iran dashed hopes for a coordinated production freeze.
In a competing vegetable oil market, May soybean oil on the Dalian Commodity Exchange and the Chicago soyoil contract both fell 0.3 percent.
Palm, soy and crude oil prices at 1028 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 2525 -24.00 2525 2562 103
MY PALM OIL APR6 2575 -20.00 2573 2614 1178
MY PALM OIL MAY6 2593 -15.00 2593 2632 18025
CHINA PALM OLEIN MAY6 5144 +42.00 5130 5214 697624
CHINA SOYOIL SEP6 5884 -18.00 5882 5992 956272
CBOT SOY OIL MAY6 32.04 -1.70 31.95 32.33 6884
INDIA PALM OIL MAR6 505.00 -1.70 503.20 508.3 984
INDIA SOYOIL MAR6 612 -0.45 612 614.5 6660
NYMEX CRUDE APR6 37.84 -0.66 37.55 38.77 51723
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 = 4.1010 ringgit)
($1 = 67.0500 Indian rupees)
($1 = 6.4942 Chinese yuan)