MARKET DEVELOPMENT
VEGOILS-Palm Surges 5 Pct to 4-year High, Tracking CBOT Soyoil Rally
VEGOILS-Palm Surges 5 Pct to 4-year High, Tracking CBOT Soyoil Rally
* Palm futures touch highest since September 2012
* On track for fourth straight session of gains
* Ringgit hits almost 14-month trough
25/11/2016 (Reuters) - Malaysian palm oil futures rose nearly 5 percent on Thursday to a four-year high, tracking a rally in soyoil on the Chicago Board of Trade (CBOT) on latest U.S. government biodiesel requirements.
Weakness in the ringgit against the dollar also helped palm oil as it makes the tropical oil cheaper for foreign buyers. The Malaysian currency touched its lowest since Sept. 30, 2015, tracking slides in most government bond prices.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 2.2 percent at 3,020 ringgit ($677.89) a tonne at the midday break, heading for their fourth straight session of gains. Traded volumes stood at 24,633 lots of 25 tonnes each.
Palm oil futures rose as much as 4.9 percent soon after the market opened, touching their highest since September 2012, tracking the overnight soyoil market, traders said.
CBOT soyoil futures surged nearly 7 percent on Wednesday after the U.S. government released final requirements for biofuel use for next year.
"The biodiesel requirements will boost demand for soybean oil and indirectly for palm oil as well, which is its near perfect substitute," said Adhi Tasmin, a palm analyst with Maybank Kim Eng Securities in Jakarta.
However, rising production and concerns over possible demand disruption in India may cap the rally in palm prices, Tasmin said.
Palm oil is expected to break a resistance at 2,963 ringgit per tonne and rise to the next resistance at 3,002 ringgit, Wang Tao, a Reuters market analyst for commodities and energy technicals, said.
The January soybean oil contract on the Dalian Commodity Exchange rose 2.7 percent, while the January contract for palm olein climbed 1.3 percent. Trading in Chicago is closed on Wednesday for Thanksgiving holiday.
Palm, soy and crude oil prices at 0505 GMT
Contract Month Last Change Low High Volume
MY PALM OIL 6-Dec 3021 +62 2994 3028 318
MY PALM OIL 7-Jan 3018 +60 3018 3100 1699
MY PALM OIL 7-Feb 3020 +66 3016 3098 11614
CHINA PALM OLEIN 7-Jan 6302 +80 6134 6496 780612
CHINA SOYOIL 7-Jan 6908 +180 6654 7058 462308
CBOT SOY OIL 6-Dec 36.85 +1.5 0 0 0
INDIA PALM OIL 6-Nov 553.8 +1.5 552.6 555.5 138
INDIA SOYOIL 6-Dec 705.7 +4.85 685.65 707.9 11380
NYMEX CRUDE 7-Jan 47.98 0.02 47.92 48.17 8853
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 = 4.4550 ringgit)
($1 = 68.7199 Indian rupees)
($1 = 6.9189 Chinese yuan)
* On track for fourth straight session of gains
* Ringgit hits almost 14-month trough
25/11/2016 (Reuters) - Malaysian palm oil futures rose nearly 5 percent on Thursday to a four-year high, tracking a rally in soyoil on the Chicago Board of Trade (CBOT) on latest U.S. government biodiesel requirements.
Weakness in the ringgit against the dollar also helped palm oil as it makes the tropical oil cheaper for foreign buyers. The Malaysian currency touched its lowest since Sept. 30, 2015, tracking slides in most government bond prices.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 2.2 percent at 3,020 ringgit ($677.89) a tonne at the midday break, heading for their fourth straight session of gains. Traded volumes stood at 24,633 lots of 25 tonnes each.
Palm oil futures rose as much as 4.9 percent soon after the market opened, touching their highest since September 2012, tracking the overnight soyoil market, traders said.
CBOT soyoil futures surged nearly 7 percent on Wednesday after the U.S. government released final requirements for biofuel use for next year.
"The biodiesel requirements will boost demand for soybean oil and indirectly for palm oil as well, which is its near perfect substitute," said Adhi Tasmin, a palm analyst with Maybank Kim Eng Securities in Jakarta.
However, rising production and concerns over possible demand disruption in India may cap the rally in palm prices, Tasmin said.
Palm oil is expected to break a resistance at 2,963 ringgit per tonne and rise to the next resistance at 3,002 ringgit, Wang Tao, a Reuters market analyst for commodities and energy technicals, said.
The January soybean oil contract on the Dalian Commodity Exchange rose 2.7 percent, while the January contract for palm olein climbed 1.3 percent. Trading in Chicago is closed on Wednesday for Thanksgiving holiday.
Palm, soy and crude oil prices at 0505 GMT
Contract Month Last Change Low High Volume
MY PALM OIL 6-Dec 3021 +62 2994 3028 318
MY PALM OIL 7-Jan 3018 +60 3018 3100 1699
MY PALM OIL 7-Feb 3020 +66 3016 3098 11614
CHINA PALM OLEIN 7-Jan 6302 +80 6134 6496 780612
CHINA SOYOIL 7-Jan 6908 +180 6654 7058 462308
CBOT SOY OIL 6-Dec 36.85 +1.5 0 0 0
INDIA PALM OIL 6-Nov 553.8 +1.5 552.6 555.5 138
INDIA SOYOIL 6-Dec 705.7 +4.85 685.65 707.9 11380
NYMEX CRUDE 7-Jan 47.98 0.02 47.92 48.17 8853
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 = 4.4550 ringgit)
($1 = 68.7199 Indian rupees)
($1 = 6.9189 Chinese yuan)