MARKET DEVELOPMENT
VEGOILS-Palm Hits More Than 2-1/2-yr High on Easing Output Concerns
VEGOILS-Palm Hits More Than 2-1/2-yr High on Easing Output Concerns
* Palm hits 2,863 rgt/T, highest since March 2014
* Market supported by stronger soyoil, lower output data-traders
(Updates prices)
09/11/2016 (Reuters) - Malaysian palm oil futures hit their highest in two years and eight months in early trade on Tuesday, as concerns of declining output and stronger soyoil supported prices.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange rose 1.9 percent at 2,843 ringgit ($677) a tonne at the close of trade. It earlier touched 2,863 ringgit, its strongest level since March 2014.
Traded volumes stood at 53,195 lots of 25 tonnes each.
"The market is really bullish because of the data," said a futures trader based in Kuala Lumpur, citing a 3.7 percent decline in October output from the month before, based on numbers from the Malaysian Palm Oil Association.
Traders said that stronger soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade also helped lift palm's prices. Palm's performance is impacted by soyoil, as they both compete for a share in the global vegetable oils market.
The December soybean oil contract on the Chicago Board of Trade was up 1.8 percent, while the January soybean oil contract on China's Dalian Commodity Exchange gained 2.1 percent.
Official palm data for the month of October will be released on Nov. 10 by industry regulator the Malaysian Palm Oil Board. A Reuters survey of eight planters, traders and analysts showed lower-than-average production growth due to lagging effects of El Nino.
October production is seen rising by 1.1 percent to 1.73 million tonnes from the previous month, while inventories are projected to gain 8.8 percent to 1.68 million tonnes.
In other related oils, the January contract for palm olein on China's Dalian Commodity Exchange rose 3.3 percent.
Palm, soy and crude oil prices at 1035 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2860 +57.00 2801 2870 112
MY PALM OIL DEC6 2844 +50.00 2770 2864 2645
MY PALM OIL JAN7 2842 +53.00 2765 2863 25321
CHINA PALM OLEIN JAN7 6140 +194.0 5950 6156 1334192
CHINA SOYOIL JAN7 6742 +136.0 6626 6754 620364
CBOT SOY OIL DEC6 35.43 +0.64 34.82 35.55 12989
INDIA PALM OIL NOV6 522.40 +5.50 519.50 524.9 1907
INDIA SOYOIL NOV6 674.55 +6.10 671 675.8 15410
NYMEX CRUDE DEC6 45.06 +0.17 44.76 45.26 62699
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 = 4.2000 ringgit)
($1 = 66.6189 Indian rupees)
($1 = 6.7794 Chinese yuan)
* Market supported by stronger soyoil, lower output data-traders
(Updates prices)
09/11/2016 (Reuters) - Malaysian palm oil futures hit their highest in two years and eight months in early trade on Tuesday, as concerns of declining output and stronger soyoil supported prices.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange rose 1.9 percent at 2,843 ringgit ($677) a tonne at the close of trade. It earlier touched 2,863 ringgit, its strongest level since March 2014.
Traded volumes stood at 53,195 lots of 25 tonnes each.
"The market is really bullish because of the data," said a futures trader based in Kuala Lumpur, citing a 3.7 percent decline in October output from the month before, based on numbers from the Malaysian Palm Oil Association.
Traders said that stronger soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade also helped lift palm's prices. Palm's performance is impacted by soyoil, as they both compete for a share in the global vegetable oils market.
The December soybean oil contract on the Chicago Board of Trade was up 1.8 percent, while the January soybean oil contract on China's Dalian Commodity Exchange gained 2.1 percent.
Official palm data for the month of October will be released on Nov. 10 by industry regulator the Malaysian Palm Oil Board. A Reuters survey of eight planters, traders and analysts showed lower-than-average production growth due to lagging effects of El Nino.
October production is seen rising by 1.1 percent to 1.73 million tonnes from the previous month, while inventories are projected to gain 8.8 percent to 1.68 million tonnes.
In other related oils, the January contract for palm olein on China's Dalian Commodity Exchange rose 3.3 percent.
Palm, soy and crude oil prices at 1035 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV6 2860 +57.00 2801 2870 112
MY PALM OIL DEC6 2844 +50.00 2770 2864 2645
MY PALM OIL JAN7 2842 +53.00 2765 2863 25321
CHINA PALM OLEIN JAN7 6140 +194.0 5950 6156 1334192
CHINA SOYOIL JAN7 6742 +136.0 6626 6754 620364
CBOT SOY OIL DEC6 35.43 +0.64 34.82 35.55 12989
INDIA PALM OIL NOV6 522.40 +5.50 519.50 524.9 1907
INDIA SOYOIL NOV6 674.55 +6.10 671 675.8 15410
NYMEX CRUDE DEC6 45.06 +0.17 44.76 45.26 62699
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 = 4.2000 ringgit)
($1 = 66.6189 Indian rupees)
($1 = 6.7794 Chinese yuan)