MARKET DEVELOPMENT
VEGOILS-Palm Oil Climbs To New 2-year High on Lower Output, Stronger Exports
VEGOILS-Palm Oil Climbs To New 2-year High on Lower Output, Stronger Exports
* Palm oil reaches 2,698 ringgit per tonne, highest intra-day since April 17, 2014
* Market propped up by improving demand from India -trader
(Updates latest prices)
22/03/2016 (Reuters) - Malaysian palm oil futures hit a 23-month high in trade on Monday, driven by lowered production forecasts and improving export demand.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.2 percent to settle at 2,685 ringgit ($662) per tonne at the close of trade on
Monday after touching a high of 2,698 ringgit, its strongest level in nearly two years. Trade volumes were 42,649 lots of 25 tonnes each in a day. "Production is still down and exports are getting higher. The bulls are not going to leave it," said a trader from Kuala Lumpur. "Demand has started to come in from India as there's the colour festival and Good Friday coming up."
Global palm oil production is expected to drop by 2 million to 3 million tonnes this year due to the dry weather effects of an El Nino, according to leading industry analysts. The weather event brings scorching heat across Southeast Asia, reducing fruit yields and output.
Malaysian palm oil exports rose 20-23 percent in March 1-20 compared with the corresponding period a month ago, driven by Indian demand.
Palm oil faces a resistance at 2,695 ringgit per tonne, a break above which could lead to a gain to 2,729 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oils, the September soybean oil contract on the Dalian Commodity Exchange edged up 0.2 percent, while the May Chicago Board of Trade soyoil contract lost 0.6 percent.
Crude palm kernel oil's offer price stood at 5241.47 ringgit per tonne (PKO-MYSTH-M1) on Monday evening, according to assessment prices by Thomson Reuters.
Palm, soy and crude oil prices at 1030 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2635 +1.00 2628 2655 1002
MY PALM OIL MAY6 2670 +2.00 2653 2689 7009
MY PALM OIL JUN6 2684 +6.00 2666 2706 21367
CHINA PALM OLEIN SEP6 5384 +32.00 5306 5394 884040
CHINA SOYOIL SEP6 6040 +12.00 5972 6056 757116
CBOT SOY OIL MAY6 33.24 +0.50 33.09 33.35 8663
INDIA PALM OIL MAR6 513.30 +0.50 505.10 515.6 1349
INDIA SOYOIL APR6 631.3 +6.10 621 631.8 54150
NYMEX CRUDE APR6 39.14 -0.30 38.61 39.28 1278
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 = 4.0540 ringgit)
($1 = 66.4900 Indian rupees)
($1 = 6.4801 Chinese yuan)
* Market propped up by improving demand from India -trader
(Updates latest prices)
22/03/2016 (Reuters) - Malaysian palm oil futures hit a 23-month high in trade on Monday, driven by lowered production forecasts and improving export demand.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 0.2 percent to settle at 2,685 ringgit ($662) per tonne at the close of trade on
Monday after touching a high of 2,698 ringgit, its strongest level in nearly two years. Trade volumes were 42,649 lots of 25 tonnes each in a day. "Production is still down and exports are getting higher. The bulls are not going to leave it," said a trader from Kuala Lumpur. "Demand has started to come in from India as there's the colour festival and Good Friday coming up."
Global palm oil production is expected to drop by 2 million to 3 million tonnes this year due to the dry weather effects of an El Nino, according to leading industry analysts. The weather event brings scorching heat across Southeast Asia, reducing fruit yields and output.
Malaysian palm oil exports rose 20-23 percent in March 1-20 compared with the corresponding period a month ago, driven by Indian demand.
Palm oil faces a resistance at 2,695 ringgit per tonne, a break above which could lead to a gain to 2,729 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oils, the September soybean oil contract on the Dalian Commodity Exchange edged up 0.2 percent, while the May Chicago Board of Trade soyoil contract lost 0.6 percent.
Crude palm kernel oil's offer price stood at 5241.47 ringgit per tonne (PKO-MYSTH-M1) on Monday evening, according to assessment prices by Thomson Reuters.
Palm, soy and crude oil prices at 1030 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL APR6 2635 +1.00 2628 2655 1002
MY PALM OIL MAY6 2670 +2.00 2653 2689 7009
MY PALM OIL JUN6 2684 +6.00 2666 2706 21367
CHINA PALM OLEIN SEP6 5384 +32.00 5306 5394 884040
CHINA SOYOIL SEP6 6040 +12.00 5972 6056 757116
CBOT SOY OIL MAY6 33.24 +0.50 33.09 33.35 8663
INDIA PALM OIL MAR6 513.30 +0.50 505.10 515.6 1349
INDIA SOYOIL APR6 631.3 +6.10 621 631.8 54150
NYMEX CRUDE APR6 39.14 -0.30 38.61 39.28 1278
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 = 4.0540 ringgit)
($1 = 66.4900 Indian rupees)
($1 = 6.4801 Chinese yuan)