MARKET DEVELOPMENT
VEGOILS-Palm Stages Small Rebound as Dalian, CBOT Support
VEGOILS-Palm Stages Small Rebound as Dalian, CBOT Support
* Palm rb egains strength on external markets
* Traders cover short position as market moves upward - trader
22/12/2016 (Reuters) - Malaysian palm oil futures edged up in the first-half session on Wednesday, breaking a three-day losing streak on the back of improved sentiment for rival oils.
Benchmark palm oil futures for March delivery rose 0.5 percent on the Bursa Malaysia Derivatives Exchange to 3,108 ringgit ($694.21) a tonne by the midday break.
Traded volumes stood at 10,667 lots of 25 tonnes each.
Palm futures continued to track external markets like the Dalian Commodity Market and Chicago Board of Trade (CBOT), a Kuala Lumpur-based trader said. Palm prices are influenced by other vegetable oils as they compete for a share of the global edible oils market.
"If Dalian goes down in the later half of today, palm will ollow suit," he said, adding that the contract will likely remain in the 3,100-3,200 ringgit range.
"The market is not reacting to the fundamentals overall - stocks are still not enough and demand is not forthcoming. The levels at which palm is traded currently are not justified. It should typically be lower in December," the trader added.
The May contract for Dalian palm olein dipped 0.25 percent, while the Dalian May soybean oil contract was unchanged.
In other related vegetable oils, the January soybean oil contract on the CBOT was up 0.39 percent.
A second trader said the market was covering its position after some traders shorted futures during the past two days on expectations that palm is on a downtrend trend.
The contract fell for a third consecutive session on Tuesday, losing 1.56 percent on weak soyoil and poor exports data. The loss erased gains made last week.
"We are seeing some short covering in line with Dalian's refined, bleached and deodorized palm olein prices this morning," the trader said.
Futures have been on an uptrend in recent weeks, supported by a weaker ringgit and lower output.
A weaker ringgit makes palm oil cheaper for holders of foreign currencies, while palm output has been curtailed by the lingering effects of a crop-damaging El Nino as well as year-end monsoon rains.
Palm, soy and crude oil prices at 0504 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3140 +17.00 3110 3140 168
MY PALM OIL FEB7 3120 +20.00 3090 3122 1477
MY PALM OIL MAR7 3108 +15.00 3082 3110 6599
CHINA PALM OLEIN MAY7 6278 -16.00 6190 6286 578152
CHINA SOYOIL MAY7 7122 +0.00 7038 7126 372908
CBOT SOY OIL JAN7 36.18 +0.70 36.03 36.21 3180
INDIA PALM OIL DEC6 565.10 +0.70 565.00 567.8 102
INDIA SOYOIL JAN7 719.65 -0.15 719.5 721.75 1460
NYMEX CRUDE FEB7 53.48 +0.18 53.44 53.67 16112
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 = 4.4780 ringgit)
($1 = 67.8150 Indian rupees)
($1 = 6.9470 Chinese yuan)
* Traders cover short position as market moves upward - trader
22/12/2016 (Reuters) - Malaysian palm oil futures edged up in the first-half session on Wednesday, breaking a three-day losing streak on the back of improved sentiment for rival oils.
Benchmark palm oil futures for March delivery rose 0.5 percent on the Bursa Malaysia Derivatives Exchange to 3,108 ringgit ($694.21) a tonne by the midday break.
Traded volumes stood at 10,667 lots of 25 tonnes each.
Palm futures continued to track external markets like the Dalian Commodity Market and Chicago Board of Trade (CBOT), a Kuala Lumpur-based trader said. Palm prices are influenced by other vegetable oils as they compete for a share of the global edible oils market.
"If Dalian goes down in the later half of today, palm will ollow suit," he said, adding that the contract will likely remain in the 3,100-3,200 ringgit range.
"The market is not reacting to the fundamentals overall - stocks are still not enough and demand is not forthcoming. The levels at which palm is traded currently are not justified. It should typically be lower in December," the trader added.
The May contract for Dalian palm olein dipped 0.25 percent, while the Dalian May soybean oil contract was unchanged.
In other related vegetable oils, the January soybean oil contract on the CBOT was up 0.39 percent.
A second trader said the market was covering its position after some traders shorted futures during the past two days on expectations that palm is on a downtrend trend.
The contract fell for a third consecutive session on Tuesday, losing 1.56 percent on weak soyoil and poor exports data. The loss erased gains made last week.
"We are seeing some short covering in line with Dalian's refined, bleached and deodorized palm olein prices this morning," the trader said.
Futures have been on an uptrend in recent weeks, supported by a weaker ringgit and lower output.
A weaker ringgit makes palm oil cheaper for holders of foreign currencies, while palm output has been curtailed by the lingering effects of a crop-damaging El Nino as well as year-end monsoon rains.
Palm, soy and crude oil prices at 0504 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3140 +17.00 3110 3140 168
MY PALM OIL FEB7 3120 +20.00 3090 3122 1477
MY PALM OIL MAR7 3108 +15.00 3082 3110 6599
CHINA PALM OLEIN MAY7 6278 -16.00 6190 6286 578152
CHINA SOYOIL MAY7 7122 +0.00 7038 7126 372908
CBOT SOY OIL JAN7 36.18 +0.70 36.03 36.21 3180
INDIA PALM OIL DEC6 565.10 +0.70 565.00 567.8 102
INDIA SOYOIL JAN7 719.65 -0.15 719.5 721.75 1460
NYMEX CRUDE FEB7 53.48 +0.18 53.44 53.67 16112
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 = 4.4780 ringgit)
($1 = 67.8150 Indian rupees)
($1 = 6.9470 Chinese yuan)