MARKET DEVELOPMENT
VEGOILS-Palm Retreats From Two-Year High as Export Drop Spurs Profit-Taking
VEGOILS-Palm Retreats From Two-Year High as Export Drop Spurs Profit-Taking
* Palm falls after reaching over two-year high the day earlier
* Market bearish as CBOT dips, lower export data released
* Malaysian palm exports fell 10.9 pct, according to ITS data
26/10/2016 (Reuters) - Malaysian palm oil futures retreated on Tuesday from the more than two-year high reached in the previous session as traders booked profits on the back of lower export data.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange slumped 1.8 percent to 2,772 ringgit ($664.43) a tonne at the midday break.
Traded volumes stood at 28,852 lots of 25 tonnes each.
"We believe the selling is tied to profit-taking after yesterday's upside extension in China's Dalian Commodity Exchange failed to take market higher, and is considered overdone," a trader from Kuala Lumpur said.
The trader noted that lower exports also added pressure to prices, on top of US soy and crude oil slipping.
Exports of Malaysian palm oil products for Oct. 1-25 fell 10.9 percent to 990,939 tonnes from 1,112,058 tonnes shipped during Sept. 1-25, cargo surveyor Intertek Testing Services said on Tuesday.
Another trader said that there was no follow through in Tuesday's first-half session from Monday's higher close that took its lead from the Chicago Board of Trade's rally.
"It is very speculative. (But) if we look at the fundamentals, production data shows decline, and as demand is still not coming in, that could have made it attractive for traders to sell," he said.
Palm oil prices respond to the movements of related vegetable oils as they compete for a share in the global edible oils market.
The December soybean oil contract on the Chicago Board of Trade rose 2.2 percent on Monday, but fell as much as 0.8 percent on Tuesday.
September palm oil production in Malaysia rose 0.8 percent from the previous month, its smallest monthly gain since June 2011. This was the lowest output figure for September since 2010. (MYPOMP-CPOTT)
Palm, soy and crude oil prices at 0441 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2781 -40.00 2781 2817 103
MY PALM OIL DEC6 2775 -48.00 2764 2822 3436
MY PALM OIL JAN7 2772 -50.00 2762 2822 15692
CHINA PALM OLEIN JAN7 5998 +184.00 5956 6092 1324472
CHINA SOYOIL JAN7 6766 +142.00 6722 6880 818950
CBOT SOY OIL DEC6 35.86 -4.10 35.72 36.2 9662
INDIA PALM OIL OCT6 535.20 -4.10 535.00 536.4 127
INDIA SOYOIL NOV6 671.1 -2.25 670.3 671.9 3890
NYMEX CRUDE DEC6 50.46 -0.06 50.37 50.63 15185
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 = 4.1750 ringgit)
($1 = 66.8299 Indian rupees)
($1 = 6.7710 Chinese yuan)
($1 = 4.1720 ringgit)
* Market bearish as CBOT dips, lower export data released
* Malaysian palm exports fell 10.9 pct, according to ITS data
26/10/2016 (Reuters) - Malaysian palm oil futures retreated on Tuesday from the more than two-year high reached in the previous session as traders booked profits on the back of lower export data.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange slumped 1.8 percent to 2,772 ringgit ($664.43) a tonne at the midday break.
Traded volumes stood at 28,852 lots of 25 tonnes each.
"We believe the selling is tied to profit-taking after yesterday's upside extension in China's Dalian Commodity Exchange failed to take market higher, and is considered overdone," a trader from Kuala Lumpur said.
The trader noted that lower exports also added pressure to prices, on top of US soy and crude oil slipping.
Exports of Malaysian palm oil products for Oct. 1-25 fell 10.9 percent to 990,939 tonnes from 1,112,058 tonnes shipped during Sept. 1-25, cargo surveyor Intertek Testing Services said on Tuesday.
Another trader said that there was no follow through in Tuesday's first-half session from Monday's higher close that took its lead from the Chicago Board of Trade's rally.
"It is very speculative. (But) if we look at the fundamentals, production data shows decline, and as demand is still not coming in, that could have made it attractive for traders to sell," he said.
Palm oil prices respond to the movements of related vegetable oils as they compete for a share in the global edible oils market.
The December soybean oil contract on the Chicago Board of Trade rose 2.2 percent on Monday, but fell as much as 0.8 percent on Tuesday.
September palm oil production in Malaysia rose 0.8 percent from the previous month, its smallest monthly gain since June 2011. This was the lowest output figure for September since 2010. (MYPOMP-CPOTT)
Palm, soy and crude oil prices at 0441 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2781 -40.00 2781 2817 103
MY PALM OIL DEC6 2775 -48.00 2764 2822 3436
MY PALM OIL JAN7 2772 -50.00 2762 2822 15692
CHINA PALM OLEIN JAN7 5998 +184.00 5956 6092 1324472
CHINA SOYOIL JAN7 6766 +142.00 6722 6880 818950
CBOT SOY OIL DEC6 35.86 -4.10 35.72 36.2 9662
INDIA PALM OIL OCT6 535.20 -4.10 535.00 536.4 127
INDIA SOYOIL NOV6 671.1 -2.25 670.3 671.9 3890
NYMEX CRUDE DEC6 50.46 -0.06 50.37 50.63 15185
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 = 4.1750 ringgit)
($1 = 66.8299 Indian rupees)
($1 = 6.7710 Chinese yuan)
($1 = 4.1720 ringgit)