MARKET DEVELOPMENT
VEGOILS-Palm Hits 2-week Low on Stronger Ringgit, Weaker Rival Oils
VEGOILS-Palm Hits 2-week Low on Stronger Ringgit, Weaker Rival Oils
* Market falls to intraday low of 3,028 rgt/T
* Palm expected to fall to 3,014 rgt/T - technicals
(Updates latest prices)
09/01/2017 (Reuters) - Malaysian palm oil futures saw a third straight session of declines on Friday evening, hitting their lowest in two weeks, as weaker performing rival oils and a stronger ringgit weighed on prices.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,075 ringgit ($688) a tonne at the end of the trading day.
Earlier in the session, they hit 3,028 ringgit, their weakest since Dec. 23.
Traded volumes stood at 67,914 lots of 25 tonnes each at the close of trade.
"The ringgit factor is what's driving the market today," said a futures trader from Kuala Lumpur, while another trader added that weaker performing related oils also dragged palm prices lower.
The ringgit, palm's currency of trade, rose 0.3 percent against the dollar to reach 4.4710 in the evening. It earlier touched 4.4700, its strongest levels in three weeks.
The ringgit had witnessed a slide in the past two months on a stronger dollar, making palm oil cheaper for holders of foreign currencies.
Palm's movements also track the prices of related edible oils, as they compete for a share in the global vegetable oils market.
The March soybean oil contract on the CBOT fell 0.4 percent, while the May soybean oil contract on the Dalian Commodity Exchange dropped 1.3 percent.
In other edible oils, the May contract for Dalian palm olein slid 1.7 percent.
Slowing palm oil shipments in recent weeks have also weighed on market sentiment. December exports of the tropical oil are seen declining for a third straight month by 3 percent, while output is forecast to drop 8 percent to 1.45 million tonnes, showed a Reuters survey.
End-stocks are expected to fall for the first time in four months by 3.8 percent to 1.32 million tonnes (MYPOMS-TPO). Official government palm oil data is scheduled to be out on Jan. 10.
Palm oil is expected to fall to 3,014 ringgit per tonne, as it has cleared a support at 3,089 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1042 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3200 +0.00 3153 3200 230
MY PALM OIL FEB7 3127 -7.00 3069 3142 4553
MY PALM OIL MAR7 3076 -21.00 3028 3100 29823
CHINA PALM OLEIN MAY7 6066 -104.00 6062 6182 576876
CHINA SOYOIL MAY7 6800 -92.00 6794 6900 359944
CBOT SOY OIL MAR7 35.09 -0.06 34.86 35.35 7487
INDIA PALM OIL JAN7 581.00 -2.90 577.90 582 1460
INDIA SOYOIL JAN7 725.8 -2.60 724.1 728 5670
NYMEX CRUDE FEB7 54.22 +0.46 53.46 54.28 73391
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 = 4.4710 ringgit)
($1 = 67.9899 Indian rupees)
($1 = 6.9160 Chinese yuan)
* Palm expected to fall to 3,014 rgt/T - technicals
(Updates latest prices)
09/01/2017 (Reuters) - Malaysian palm oil futures saw a third straight session of declines on Friday evening, hitting their lowest in two weeks, as weaker performing rival oils and a stronger ringgit weighed on prices.
Benchmark palm oil futures for March delivery on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 3,075 ringgit ($688) a tonne at the end of the trading day.
Earlier in the session, they hit 3,028 ringgit, their weakest since Dec. 23.
Traded volumes stood at 67,914 lots of 25 tonnes each at the close of trade.
"The ringgit factor is what's driving the market today," said a futures trader from Kuala Lumpur, while another trader added that weaker performing related oils also dragged palm prices lower.
The ringgit, palm's currency of trade, rose 0.3 percent against the dollar to reach 4.4710 in the evening. It earlier touched 4.4700, its strongest levels in three weeks.
The ringgit had witnessed a slide in the past two months on a stronger dollar, making palm oil cheaper for holders of foreign currencies.
Palm's movements also track the prices of related edible oils, as they compete for a share in the global vegetable oils market.
The March soybean oil contract on the CBOT fell 0.4 percent, while the May soybean oil contract on the Dalian Commodity Exchange dropped 1.3 percent.
In other edible oils, the May contract for Dalian palm olein slid 1.7 percent.
Slowing palm oil shipments in recent weeks have also weighed on market sentiment. December exports of the tropical oil are seen declining for a third straight month by 3 percent, while output is forecast to drop 8 percent to 1.45 million tonnes, showed a Reuters survey.
End-stocks are expected to fall for the first time in four months by 3.8 percent to 1.32 million tonnes (MYPOMS-TPO). Official government palm oil data is scheduled to be out on Jan. 10.
Palm oil is expected to fall to 3,014 ringgit per tonne, as it has cleared a support at 3,089 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1042 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3200 +0.00 3153 3200 230
MY PALM OIL FEB7 3127 -7.00 3069 3142 4553
MY PALM OIL MAR7 3076 -21.00 3028 3100 29823
CHINA PALM OLEIN MAY7 6066 -104.00 6062 6182 576876
CHINA SOYOIL MAY7 6800 -92.00 6794 6900 359944
CBOT SOY OIL MAR7 35.09 -0.06 34.86 35.35 7487
INDIA PALM OIL JAN7 581.00 -2.90 577.90 582 1460
INDIA SOYOIL JAN7 725.8 -2.60 724.1 728 5670
NYMEX CRUDE FEB7 54.22 +0.46 53.46 54.28 73391
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 = 4.4710 ringgit)
($1 = 67.9899 Indian rupees)
($1 = 6.9160 Chinese yuan)