MARKET DEVELOPMENT
VEGOILS-Palm Hits Its Highest in More Than A Week
VEGOILS-Palm Hits Its Highest in More Than A Week
* Palm hits 1-1/2-wk high in second session of gains
* Market up on better exports, tight supplies - traders
(Updates latest prices)
29/12/2016 (Reuters) - Malaysian palm oil futures rose to their highest in one-and-a-half weeks on Wednesday, marking a second consecutive session of gains, helped by tight supplies and improving exports.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were up 0.1 percent at 3,130 ringgit ($699) a tonne at the close of trade, after touching a high of 3,153 ringgit earlier in the day, its strongest since Dec. 19.
Traded volumes stood at 37,024 lots of 25 tonnes each at the end of the trading day, below the 2015 daily average of 44,600 lots.
"The market was caught by surprise as exports improved," said a Kuala Lumpur-based trader, referring to cargo surveyor data, which showed that exports fell less than expected.
"Production is bad and physical prices are still high. I think (prices) will test highs again."
Malaysian palm oil shipments showed that falls in exports were slowing. Exports fell 5-7 percent in the Dec. 1-25 period from the previous month, compared with a 14-17 percent fall during Dec. 1-20.
Demand for the tropical oil usually weakens at the end of the year from major buyers India and China, as palm solidifies due to the cold weather.
Production in Malaysia, the world's second largest producer, usually drops in the final quarter of the year as the fruit-harvesting process is disrupted by rainfall, contributing to tight supplies.
In related vegetable oils, the March soybean oil contract on the CBOT was down 0.3 percent, while the May soybean oil contract on the Dalian Commodity Exchange rose 1 percent.
The May contract for Dalian palm olein rose 1.1percent.
Palm prices are impacted by the performance of other rival edible oils, as they compete for a share in the global vegetable oils market.
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 = 4.4800 ringgit)
($1 = 68.1478 Indian rupees)
($1 = 6.9571 Chinese yuan)
* Market up on better exports, tight supplies - traders
(Updates latest prices)
29/12/2016 (Reuters) - Malaysian palm oil futures rose to their highest in one-and-a-half weeks on Wednesday, marking a second consecutive session of gains, helped by tight supplies and improving exports.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were up 0.1 percent at 3,130 ringgit ($699) a tonne at the close of trade, after touching a high of 3,153 ringgit earlier in the day, its strongest since Dec. 19.
Traded volumes stood at 37,024 lots of 25 tonnes each at the end of the trading day, below the 2015 daily average of 44,600 lots.
"The market was caught by surprise as exports improved," said a Kuala Lumpur-based trader, referring to cargo surveyor data, which showed that exports fell less than expected.
"Production is bad and physical prices are still high. I think (prices) will test highs again."
Malaysian palm oil shipments showed that falls in exports were slowing. Exports fell 5-7 percent in the Dec. 1-25 period from the previous month, compared with a 14-17 percent fall during Dec. 1-20.
Demand for the tropical oil usually weakens at the end of the year from major buyers India and China, as palm solidifies due to the cold weather.
Production in Malaysia, the world's second largest producer, usually drops in the final quarter of the year as the fruit-harvesting process is disrupted by rainfall, contributing to tight supplies.
In related vegetable oils, the March soybean oil contract on the CBOT was down 0.3 percent, while the May soybean oil contract on the Dalian Commodity Exchange rose 1 percent.
The May contract for Dalian palm olein rose 1.1percent.
Palm prices are impacted by the performance of other rival edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1034 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3212 -5.00 3210 3230 774
MY PALM OIL FEB7 3172 +9.00 3162 3194 2507
MY PALM OIL MAR7 3134 +2.00 3121 3153 19364
CHINA PALM OLEIN MAY7 6244 +68.00 6222 6312 791750
CHINA SOYOIL MAY7 6996 +68.00 6968 7048 479984
CBOT SOY OIL MAR7 35.31 -0.09 35.18 35.53 9943
INDIA PALM OIL DEC6 581.30 +4.20 575.20 582.5 446
INDIA SOYOIL JAN7 719.45 +1.70 716.3 722.5 14200
NYMEX CRUDE FEB7 54.22 +0.32 53.74 54.29 47527
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 = 4.4800 ringgit)
($1 = 68.1478 Indian rupees)
($1 = 6.9571 Chinese yuan)