MARKET DEVELOPMENT
Palm Gains For Sixth Straight Session on Tight Supplies, Bullish Forecasts
Palm Gains For Sixth Straight Session on Tight Supplies, Bullish Forecasts
29/11/2016 (The Star) - Malaysian palm futures rose on Monday for a sixth straight session, helped by tight supplies and price forecasts by leading analysts at an industry conference on Friday.
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 1.5 percent to 3,077 ringgit ($689.91) a tonne at the end of the trading day
Traded volumes stood at 38,737 lots of 25 tonnes each, below the 2015 daily average of 44,600 lots.
Palm hit its highest levels since September 2012 on Thursday, tracking the soyoil market, and is seen remaining at current levels by traders due to a lack of bearish factors.
Soyoil futures on the Chicago Board of Trade jumped nearly 7 percent last week on news of higher biodiesel mandates in the United States.
"The conference speakers have been bullish in the short term, and in general there is a feeling of tightness as output and stocks are not rising," said a trader in Kuala Lumpur,referring to the price forecasts of industry analysts at a palm oil conference in Indonesia last week.
"However, we have to also look at demand. There's been a slowdown because of high prices."
Palm prices could rise 10 percent from current levels by the first quarter of 2017, before declining again as stockpiles recover, said leading analyst Dorab Mistry at the conference in Bali on Friday.
Another analyst, Siegfried Falk, said Rotterdam crude palm oil prices were seen at $770-$800 per tonne from January to March 2017 before dipping to $750-$780 from April to June.
Palm oil may rise to 3,093 ringgit per tonne, as it has cleared a resistance at 3,027 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, the December soybean oil contract on the CBOT rose 0.9 percent, while the May soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent. The May contract for palm olein on the Dalian Commodity Exchange was up 1 percent.- Reuters
Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 1.5 percent to 3,077 ringgit ($689.91) a tonne at the end of the trading day
Traded volumes stood at 38,737 lots of 25 tonnes each, below the 2015 daily average of 44,600 lots.
Palm hit its highest levels since September 2012 on Thursday, tracking the soyoil market, and is seen remaining at current levels by traders due to a lack of bearish factors.
Soyoil futures on the Chicago Board of Trade jumped nearly 7 percent last week on news of higher biodiesel mandates in the United States.
"The conference speakers have been bullish in the short term, and in general there is a feeling of tightness as output and stocks are not rising," said a trader in Kuala Lumpur,referring to the price forecasts of industry analysts at a palm oil conference in Indonesia last week.
"However, we have to also look at demand. There's been a slowdown because of high prices."
Palm prices could rise 10 percent from current levels by the first quarter of 2017, before declining again as stockpiles recover, said leading analyst Dorab Mistry at the conference in Bali on Friday.
Another analyst, Siegfried Falk, said Rotterdam crude palm oil prices were seen at $770-$800 per tonne from January to March 2017 before dipping to $750-$780 from April to June.
Palm oil may rise to 3,093 ringgit per tonne, as it has cleared a resistance at 3,027 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, the December soybean oil contract on the CBOT rose 0.9 percent, while the May soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent. The May contract for palm olein on the Dalian Commodity Exchange was up 1 percent.- Reuters