MARKET DEVELOPMENT
VEGOILS-Palm Posts First Fall in Three Sessions
VEGOILS-Palm Posts First Fall in Three Sessions
* Market falls on "weak soybean oil complex" -trader
* Palm oil target seen at 3,219 rgt/T -technicals
(Updates prices)
05/01/2017 (Reuters) - Malaysian palm oil futures fell on Wednesday evening after two sessions of gains, tracking weaker rival oilseed soy, though tight supplies because of lower output curbed further losses.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,141 ringgit ($699) a tonne on Wednesday evening, their biggest daily pct drop since Dec. 29.
Palm had climbed to a two-week high on Tuesday, lifted by slow output and a weaker ringgit, which makes the tropical oil cheaper for foreign currency holders.
Traded volumes stood at 32,568 lots of 25 tonnes each at the end of the trading day.
"The issue is that the soybean complex is weak, and the palm oil to soybean oil spread is narrow," said one Kuala Lumpur futures trader, adding that floods in Malaysia's east coast states of Kelantan and Terengganu could hit output and lift prices.
"However, palm prices moving up further is hard unless soybean oil shows some strength, as tight supplies are priced in already."
Palm oil prices track the movements of soyoil because they compete for a share in the global vegetable oils market. The CBOT March soybean oil contract was up 0.3 percent, but the May contract on the Dalian Commodity Exchange dropped as much as 1.8 percent.
Technical analysis showed that palm oil could target 3,219 ringgit, Reuters market analyst Wang Tao said.
In other related edible oils, the May contract for Dalian palm olein fell 1.7 percent.
Palm, soy and crude oil prices at 1038 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3230 -16.00 3230 3245 158
MY PALM OIL FEB7 3190 -22.00 3185 3200 1105
MY PALM OIL MAR7 3143 -22.00 3130 3153 14456
CHINA PALM OLEIN MAY7 6170 -108.00 6114 6318 910296
CHINA SOYOIL MAY7 6880 -128.00 6822 6998 582356
CBOT SOY OIL MAR7 34.92 -0.20 34.54 34.94 7454
INDIA PALM OIL JAN7 583.00 +1.50 578.50 583.7 699
INDIA SOYOIL JAN7 726.4 -0.20 724.6 727.9 7090
NYMEX CRUDE FEB7 52.43 +0.10 52.38 52.96 87580
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 = 4.4960 ringgit)
($1 = 68.1299 Indian rupees)
($1 = 6.9400 Chinese yuan)
* Palm oil target seen at 3,219 rgt/T -technicals
(Updates prices)
05/01/2017 (Reuters) - Malaysian palm oil futures fell on Wednesday evening after two sessions of gains, tracking weaker rival oilseed soy, though tight supplies because of lower output curbed further losses.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,141 ringgit ($699) a tonne on Wednesday evening, their biggest daily pct drop since Dec. 29.
Palm had climbed to a two-week high on Tuesday, lifted by slow output and a weaker ringgit, which makes the tropical oil cheaper for foreign currency holders.
Traded volumes stood at 32,568 lots of 25 tonnes each at the end of the trading day.
"The issue is that the soybean complex is weak, and the palm oil to soybean oil spread is narrow," said one Kuala Lumpur futures trader, adding that floods in Malaysia's east coast states of Kelantan and Terengganu could hit output and lift prices.
"However, palm prices moving up further is hard unless soybean oil shows some strength, as tight supplies are priced in already."
Palm oil prices track the movements of soyoil because they compete for a share in the global vegetable oils market. The CBOT March soybean oil contract was up 0.3 percent, but the May contract on the Dalian Commodity Exchange dropped as much as 1.8 percent.
Technical analysis showed that palm oil could target 3,219 ringgit, Reuters market analyst Wang Tao said.
In other related edible oils, the May contract for Dalian palm olein fell 1.7 percent.
Palm, soy and crude oil prices at 1038 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3230 -16.00 3230 3245 158
MY PALM OIL FEB7 3190 -22.00 3185 3200 1105
MY PALM OIL MAR7 3143 -22.00 3130 3153 14456
CHINA PALM OLEIN MAY7 6170 -108.00 6114 6318 910296
CHINA SOYOIL MAY7 6880 -128.00 6822 6998 582356
CBOT SOY OIL MAR7 34.92 -0.20 34.54 34.94 7454
INDIA PALM OIL JAN7 583.00 +1.50 578.50 583.7 699
INDIA SOYOIL JAN7 726.4 -0.20 724.6 727.9 7090
NYMEX CRUDE FEB7 52.43 +0.10 52.38 52.96 87580
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 = 4.4960 ringgit)
($1 = 68.1299 Indian rupees)
($1 = 6.9400 Chinese yuan)