MARKET DEVELOPMENT
VEGOILS-Palm Hits One Week Top on Improving Demand, Tighter Supply
VEGOILS-Palm Hits One Week Top on Improving Demand, Tighter Supply
* Palm hits daily high of 3,150 rgt/T in early trade
* Early rise triggered by USDA data, gains pared later
(Updates latest prices, quote)
13/01/2017 (Reuters) - Malaysian palm oil futures climbed to their strongest levels in a week in early trade on Friday due to improving demand and tight supply, before paring gains in the afternoon on weakening rival oils.
Benchmark palm oil futures for March delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange rose 0.1 percent to 3,120 ringgit ($700) a tonne at the close of trade. The contract earlier reached 3,150 ringgit, its highest level since Jan. 5.
Traded volumes stood at 54,537 lots of 25 tonnes each at the end of the trading day.
Palm oil has enjoyed bullish fundamentals for some time, said a trader, pointing to tight market supplies and improving export demand.
Palm's gains softened later in the evening, tracking weaker performing rival oils, though bullish USDA data had earlier provided support.
The USDA cut its estimate of the U.S. 2016 harvest, prompting soybean futures on the Chicago Board of Trade SH7 to hit a three-and-a-half week high after the data was released this week. urn:newsml:reuters.com:*:nC3N1DM00P
The March soybean oil contract BOv1 on the CBOT was fell 0.4 percent on Friday, after rising to a near one-month high in its previous trading session.
In other related vegetable oils, the May contract for Dalian palm olein DCPcv1 was up 0.1 percent.
Palm oil prices are affected by the movement of related vegetable oils, as they compete for a share in the global edible oils market.
Chinese imports are also supporting prices. Demand for Malaysian palm from the world's second largest palm oil consumer rose more than 30 percent in the first 10 days of January compared with the same period last month on restocking ahead of the Lunar New Year celebrations, cargo surveyor data showed.
The festival, celebrated in late January in China, typically stokes consumption of palm oil in cooking.
To meet that demand, Malaysia's palm oil exports jumped more than 8 percent in the first 10 days of January from the corresponding period last month, cargo surveyor data showed.
Palm, soy and crude oil prices at 1047 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3330 +25.00 3300 3330 68
MY PALM OIL FEB7 3183 +5.00 3173 3210 2643
MY PALM OIL MAR7 3118 +4.00 3108 3150 23117
CHINA PALM OLEIN MAY7 6268 +4.00 6240 6342 677188
CHINA SOYOIL MAY7 6936 +0.00 6896 6994 370210
CBOT SOY OIL MAR7 35.92 +0.00 35.85 36.2 6799
INDIA PALM OIL JAN7 588.60 +0.90 588.00 592.7 941
INDIA SOYOIL JAN7 730.6 +1.25 730.4 733.4 2120
NYMEX CRUDE FEB7 52.40 -0.61 52.30 53.17 74081
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 = 4.4600 ringgit)
($1 = 68.1929 Indian rupees)
($1 = 6.8970 Chinese yuan)
* Early rise triggered by USDA data, gains pared later
(Updates latest prices, quote)
13/01/2017 (Reuters) - Malaysian palm oil futures climbed to their strongest levels in a week in early trade on Friday due to improving demand and tight supply, before paring gains in the afternoon on weakening rival oils.
Benchmark palm oil futures for March delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange rose 0.1 percent to 3,120 ringgit ($700) a tonne at the close of trade. The contract earlier reached 3,150 ringgit, its highest level since Jan. 5.
Traded volumes stood at 54,537 lots of 25 tonnes each at the end of the trading day.
Palm oil has enjoyed bullish fundamentals for some time, said a trader, pointing to tight market supplies and improving export demand.
Palm's gains softened later in the evening, tracking weaker performing rival oils, though bullish USDA data had earlier provided support.
The USDA cut its estimate of the U.S. 2016 harvest, prompting soybean futures on the Chicago Board of Trade SH7 to hit a three-and-a-half week high after the data was released this week. urn:newsml:reuters.com:*:nC3N1DM00P
The March soybean oil contract BOv1 on the CBOT was fell 0.4 percent on Friday, after rising to a near one-month high in its previous trading session.
In other related vegetable oils, the May contract for Dalian palm olein DCPcv1 was up 0.1 percent.
Palm oil prices are affected by the movement of related vegetable oils, as they compete for a share in the global edible oils market.
Chinese imports are also supporting prices. Demand for Malaysian palm from the world's second largest palm oil consumer rose more than 30 percent in the first 10 days of January compared with the same period last month on restocking ahead of the Lunar New Year celebrations, cargo surveyor data showed.
The festival, celebrated in late January in China, typically stokes consumption of palm oil in cooking.
To meet that demand, Malaysia's palm oil exports jumped more than 8 percent in the first 10 days of January from the corresponding period last month, cargo surveyor data showed.
Palm, soy and crude oil prices at 1047 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN7 3330 +25.00 3300 3330 68
MY PALM OIL FEB7 3183 +5.00 3173 3210 2643
MY PALM OIL MAR7 3118 +4.00 3108 3150 23117
CHINA PALM OLEIN MAY7 6268 +4.00 6240 6342 677188
CHINA SOYOIL MAY7 6936 +0.00 6896 6994 370210
CBOT SOY OIL MAR7 35.92 +0.00 35.85 36.2 6799
INDIA PALM OIL JAN7 588.60 +0.90 588.00 592.7 941
INDIA SOYOIL JAN7 730.6 +1.25 730.4 733.4 2120
NYMEX CRUDE FEB7 52.40 -0.61 52.30 53.17 74081
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 = 4.4600 ringgit)
($1 = 68.1929 Indian rupees)
($1 = 6.8970 Chinese yuan)