MARKET DEVELOPMENT
VEGOILS-Palm Falls on Weaker Soyoil, Year-end Profit Taking
VEGOILS-Palm Falls on Weaker Soyoil, Year-end Profit Taking
* Palm eases after two previous sessions of gains
* Market down on weaker soy, year-end profit taking - trader
* Palm may climb to 3,415 rgt in 3 months - Technicals
(Updates latest prices)
30/12/2016 (Reuters) - Malaysian palm oil futures eased on Thursday, dipping after two sessions of gains on year-end profit-taking and in line with declines in rival soyoil.
The tropical oil had risen to its highest in a week-and-a-half on Wednesday, supported by a rebound in exports and tight market supplies.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,106 ringgit ($693) a tonne at the end of the trading day. Traded volumes stood at 43,089 lots of 25 tonnes each in a day.
"Towards the year-end there is some profit-taking after book closures. Furthermore soy oil is also not supportive," said a futures trader in Kuala Lumpur.
"However, the tightness is still there, production is down, so the market is still on the upside moving forward."
Output in Malaysia, the world's second-largest producer, declines seasonally in the last quarter of the year. It also drops at the year-end when the monsoon season arrives, as the fruit-harvesting process is disrupted by rainfall which contributes to tight supplies.
Output in November fell 6.1 percent to 1.57 million tonnes, according to government data. Traders and analysts said it could remain weak in December.
Palm oil may retest resistance at 3,163 ringgit per tonne, with a good chance of breaking above this level and rising more towards the next resistance at 3,415 ringgit over the next three months, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm prices are also impacted by the performance of rival edible oils, as they compete for a share in the global vegetable oils market.
The March soybean oil contract on the CBOT was up 0.1 percent, while the May soybean oil contract on the Dalian Commodity Exchange fell 0.2 percent.
The May contract for Dalian palm olein dropped 0.5 percent.
Palm, soy and crude oil prices at 1126 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3197 -17.00 3177 3197 481
MY PALM OIL FEB7 3153 -20.00 3133 3169 2975
MY PALM OIL MAR7 3103 -24.00 3084 3128 20676
CHINA PALM OLEIN MAY7 6234 -30.00 6196 6282 665960
CHINA SOYOIL MAY7 6996 -14.00 6950 7036 409550
CBOT SOY OIL MAR7 35.14 +0.06 34.82 35.19 6340
INDIA PALM OIL DEC6 582.30 +3.10 578.10 583.5 245
INDIA SOYOIL JAN7 718.7 +3.85 714.6 718.8 15610
NYMEX CRUDE FEB7 53.84 -0.22 53.46 54.07 59734
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 = 4.4830 ringgit)
($1 = 68.1500 Indian rupees)
($1 = 6.9542 Chinese yuan)
* Market down on weaker soy, year-end profit taking - trader
* Palm may climb to 3,415 rgt in 3 months - Technicals
(Updates latest prices)
30/12/2016 (Reuters) - Malaysian palm oil futures eased on Thursday, dipping after two sessions of gains on year-end profit-taking and in line with declines in rival soyoil.
The tropical oil had risen to its highest in a week-and-a-half on Wednesday, supported by a rebound in exports and tight market supplies.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,106 ringgit ($693) a tonne at the end of the trading day. Traded volumes stood at 43,089 lots of 25 tonnes each in a day.
"Towards the year-end there is some profit-taking after book closures. Furthermore soy oil is also not supportive," said a futures trader in Kuala Lumpur.
"However, the tightness is still there, production is down, so the market is still on the upside moving forward."
Output in Malaysia, the world's second-largest producer, declines seasonally in the last quarter of the year. It also drops at the year-end when the monsoon season arrives, as the fruit-harvesting process is disrupted by rainfall which contributes to tight supplies.
Output in November fell 6.1 percent to 1.57 million tonnes, according to government data. Traders and analysts said it could remain weak in December.
Palm oil may retest resistance at 3,163 ringgit per tonne, with a good chance of breaking above this level and rising more towards the next resistance at 3,415 ringgit over the next three months, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm prices are also impacted by the performance of rival edible oils, as they compete for a share in the global vegetable oils market.
The March soybean oil contract on the CBOT was up 0.1 percent, while the May soybean oil contract on the Dalian Commodity Exchange fell 0.2 percent.
The May contract for Dalian palm olein dropped 0.5 percent.
Palm, soy and crude oil prices at 1126 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3197 -17.00 3177 3197 481
MY PALM OIL FEB7 3153 -20.00 3133 3169 2975
MY PALM OIL MAR7 3103 -24.00 3084 3128 20676
CHINA PALM OLEIN MAY7 6234 -30.00 6196 6282 665960
CHINA SOYOIL MAY7 6996 -14.00 6950 7036 409550
CBOT SOY OIL MAR7 35.14 +0.06 34.82 35.19 6340
INDIA PALM OIL DEC6 582.30 +3.10 578.10 583.5 245
INDIA SOYOIL JAN7 718.7 +3.85 714.6 718.8 15610
NYMEX CRUDE FEB7 53.84 -0.22 53.46 54.07 59734
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 = 4.4830 ringgit)
($1 = 68.1500 Indian rupees)
($1 = 6.9542 Chinese yuan)