MARKET DEVELOPMENT
VEGOILS-Palm Oil Edges Higher on Weaker Ringgit, Stronger Dalian
VEGOILS-Palm Oil Edges Higher on Weaker Ringgit, Stronger Dalian
* Palm oil sees second straight session of gains
* Ringgit, palm's currency of trade, hit lowest level since Jan 20
* Palm may bounce towards 2,921 ringgit/tonne - Technicals
(Updates latest prices)
18/11/2016 (Reuters) - Malaysian palm oil futures rose in trade on Thursday evening, aided by a weaker ringgit , which hit a near 10-month low, and stronger-performing rival oils on China's Dalian Commodity Exchange.
A weaker ringgit usually lends support to palm by making it cheaper for foreign currency holders. It reached 4.3900 per dollar late on Thursday, its weakest levels since Jan. 20.
Palm oil was also supported by expectations of lower output growth in November.
Benchmark palm oil futures for February on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,876 ringgit ($655) a tonne at the end of the trading day.
Traded volumes stood at 48,343 lots of 25 tonnes each in a day, above the 2015 daily average of 44,600 lots.
"The U.S. dollar is strengthening. The market is also up on a stronger-performing Dalian, and a possibility that crude palm oil production is not picking up," said a trader from Kuala Lumpur.
Palm prices are affected by the performance of related vegetable oils on the Chinese Dalian, as they compete for a share in the global edible oils market.
The January soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent, while the January contract for palm olein on the Dalian Commodity Exchange climbed 1.4 percent.
The December soybean oil contract on the CBOT was up 0.3 percent.
Palm oil production in Malaysia, the world's second-largest producer after Indonesia, is still affected by the lingering effects of a crop-damaging El Nino.
The weather phenomenon brought dry weather across Southeast Asia, lowered palm's fruit yields, and affected the output.
Production in Malaysia saw a monthly decline of 2.2 percent in October, although the output seasonally rises by year-end.
Palm oil may bounce more to 2,921 ringgit per tonne, as it has cleared a resistance at 2,881 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1044 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 2882 +12.00 2869 2906 1074
MY PALM OIL JAN7 2881 +14.00 2856 2913 9630
MY PALM OIL FEB7 2876 +21.00 2847 2907 27696
CHINA PALM OLEIN JAN7 6140 +84.00 6066 6182 880562
CHINA SOYOIL JAN7 6638 +6.00 6602 6686 372762
CBOT SOY OIL DEC6 34.19 +0.09 33.97 34.32 4836
INDIA PALM OIL NOV6 529.50 +2.90 526.70 532.9 684
INDIA SOYOIL NOV6 686.5 +4.45 683.7 687.1 1250
NYMEX CRUDE DEC6 45.70 +0.13 45.28 45.83 42327
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 = 4.3900 ringgit)
($1 = 67.8050 Indian rupees)
($1 = 6.8700 Chinese yuan)
* Ringgit, palm's currency of trade, hit lowest level since Jan 20
* Palm may bounce towards 2,921 ringgit/tonne - Technicals
(Updates latest prices)
18/11/2016 (Reuters) - Malaysian palm oil futures rose in trade on Thursday evening, aided by a weaker ringgit , which hit a near 10-month low, and stronger-performing rival oils on China's Dalian Commodity Exchange.
A weaker ringgit usually lends support to palm by making it cheaper for foreign currency holders. It reached 4.3900 per dollar late on Thursday, its weakest levels since Jan. 20.
Palm oil was also supported by expectations of lower output growth in November.
Benchmark palm oil futures for February on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,876 ringgit ($655) a tonne at the end of the trading day.
Traded volumes stood at 48,343 lots of 25 tonnes each in a day, above the 2015 daily average of 44,600 lots.
"The U.S. dollar is strengthening. The market is also up on a stronger-performing Dalian, and a possibility that crude palm oil production is not picking up," said a trader from Kuala Lumpur.
Palm prices are affected by the performance of related vegetable oils on the Chinese Dalian, as they compete for a share in the global edible oils market.
The January soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent, while the January contract for palm olein on the Dalian Commodity Exchange climbed 1.4 percent.
The December soybean oil contract on the CBOT was up 0.3 percent.
Palm oil production in Malaysia, the world's second-largest producer after Indonesia, is still affected by the lingering effects of a crop-damaging El Nino.
The weather phenomenon brought dry weather across Southeast Asia, lowered palm's fruit yields, and affected the output.
Production in Malaysia saw a monthly decline of 2.2 percent in October, although the output seasonally rises by year-end.
Palm oil may bounce more to 2,921 ringgit per tonne, as it has cleared a resistance at 2,881 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1044 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC6 2882 +12.00 2869 2906 1074
MY PALM OIL JAN7 2881 +14.00 2856 2913 9630
MY PALM OIL FEB7 2876 +21.00 2847 2907 27696
CHINA PALM OLEIN JAN7 6140 +84.00 6066 6182 880562
CHINA SOYOIL JAN7 6638 +6.00 6602 6686 372762
CBOT SOY OIL DEC6 34.19 +0.09 33.97 34.32 4836
INDIA PALM OIL NOV6 529.50 +2.90 526.70 532.9 684
INDIA SOYOIL NOV6 686.5 +4.45 683.7 687.1 1250
NYMEX CRUDE DEC6 45.70 +0.13 45.28 45.83 42327
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 = 4.3900 ringgit)
($1 = 67.8050 Indian rupees)
($1 = 6.8700 Chinese yuan)