MARKET DEVELOPMENT
VEGOILS-Palm Oil Gains on Weather Concerns, Weak Ringgit
VEGOILS-Palm Oil Gains on Weather Concerns, Weak Ringgit
* Palm touches 2,780 rgt/T
* Sees sharpest pct gain in nearly two weeks
(Updates latest prices, quote)
08/11/2016 (Reuters) - Malaysian palm oil futures touched their highest in over a week at one point on Monday, bolstered by a weaker ringgit and concerns that year-end monsoons could disrupt harvests.
Gains in soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade also helped underpin Malaysian palm oil, which competes with soyoil and other products for a share in the global vegetable oils market.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange closed up 1.9 percent at 2,789 ringgit ($663) a tonne, the biggest daily gain in nearly two weeks.
Traded volumes stood at 40,067 lots of 25 tonnes each on Monday evening, below the 2015 daily average of 44,600 lots.
Earlier in the session, the benchmark climbed to an intraday high of 2,794 ringgit, its strongest level since Oct. 28.
"There are weather concerns and the ringgit has also weakened," said a trader from Kuala Lumpur. "The market is also awaiting CBOT soyoil and Dalian's palm olein movement."
A weaker ringgit, palm's traded currency, usually lifts palm's performance by making it cheaper for holders of foreign currencies. It weakened 0.2 percent against the dollar on Monday evening, after earlier touching its weakest levels since Oct. 17.
On Friday, palm recorded its sharpest daily fall in nearly two weeks.
Year-end rains could hit palm oil output in the short term as it may disrupt harvesting. Production is already forecast to see lower-than-average growth due to lagging effects of El Nino.
October production is seen rising marginally by 1.1 percent to 1.73 million tonnes from the previous month, according to a Reuters survey of eight planters, traders and analysts. (MYPOMP-CPOTT)
Official palm data for the month of October will be released on Nov. 10 by industry regulator the Malaysian Palm Oil Board.
Among competing oils, the December soybean oil contract on the Chicago Board of Trade was up 0.8 percent, while the January soybean oil contract on China's Dalian Commodity Exchange was up 0.4 percent.
The January contract for palm olein on China's Dalian Commodity Exchange rose 0.9 percent.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2807 +55.00 2796 2809 94
MY PALM OIL DEC6 2794 +51.00 2765 2800 3328
MY PALM OIL JAN7 2789 +53.00 2746 2794 22052
CHINA PALM OLEIN JAN7 5996 +56.00 5844 6036 919682
CHINA SOYOIL JAN7 6654 +28.00 6534 6682 511476
CBOT SOY OIL DEC6 34.96 +0.25 34.53 34.99 8163
INDIA PALM OIL NOV6 519.00 +3.60 516.00 519.7 1412
INDIA SOYOIL NOV6 669.8 +1.90 668 670.5 7360
NYMEX CRUDE DEC6 44.71 +0.64 44.35 44.99 76302
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 = 4.2070 ringgit)
($1 = 66.7250 Indian rupees)
($1 = 6.7739 Chinese yuan)
* Sees sharpest pct gain in nearly two weeks
(Updates latest prices, quote)
08/11/2016 (Reuters) - Malaysian palm oil futures touched their highest in over a week at one point on Monday, bolstered by a weaker ringgit and concerns that year-end monsoons could disrupt harvests.
Gains in soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade also helped underpin Malaysian palm oil, which competes with soyoil and other products for a share in the global vegetable oils market.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange closed up 1.9 percent at 2,789 ringgit ($663) a tonne, the biggest daily gain in nearly two weeks.
Traded volumes stood at 40,067 lots of 25 tonnes each on Monday evening, below the 2015 daily average of 44,600 lots.
Earlier in the session, the benchmark climbed to an intraday high of 2,794 ringgit, its strongest level since Oct. 28.
"There are weather concerns and the ringgit has also weakened," said a trader from Kuala Lumpur. "The market is also awaiting CBOT soyoil and Dalian's palm olein movement."
A weaker ringgit, palm's traded currency, usually lifts palm's performance by making it cheaper for holders of foreign currencies. It weakened 0.2 percent against the dollar on Monday evening, after earlier touching its weakest levels since Oct. 17.
On Friday, palm recorded its sharpest daily fall in nearly two weeks.
Year-end rains could hit palm oil output in the short term as it may disrupt harvesting. Production is already forecast to see lower-than-average growth due to lagging effects of El Nino.
October production is seen rising marginally by 1.1 percent to 1.73 million tonnes from the previous month, according to a Reuters survey of eight planters, traders and analysts. (MYPOMP-CPOTT)
Official palm data for the month of October will be released on Nov. 10 by industry regulator the Malaysian Palm Oil Board.
Among competing oils, the December soybean oil contract on the Chicago Board of Trade was up 0.8 percent, while the January soybean oil contract on China's Dalian Commodity Exchange was up 0.4 percent.
The January contract for palm olein on China's Dalian Commodity Exchange rose 0.9 percent.
Palm, soy and crude oil prices at 1037 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2807 +55.00 2796 2809 94
MY PALM OIL DEC6 2794 +51.00 2765 2800 3328
MY PALM OIL JAN7 2789 +53.00 2746 2794 22052
CHINA PALM OLEIN JAN7 5996 +56.00 5844 6036 919682
CHINA SOYOIL JAN7 6654 +28.00 6534 6682 511476
CBOT SOY OIL DEC6 34.96 +0.25 34.53 34.99 8163
INDIA PALM OIL NOV6 519.00 +3.60 516.00 519.7 1412
INDIA SOYOIL NOV6 669.8 +1.90 668 670.5 7360
NYMEX CRUDE DEC6 44.71 +0.64 44.35 44.99 76302
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 = 4.2070 ringgit)
($1 = 66.7250 Indian rupees)
($1 = 6.7739 Chinese yuan)