MARKET DEVELOPMENT
VEGOILS-Palm Oil Rebounds on Expectations of Positive Data
VEGOILS-Palm Oil Rebounds on Expectations of Positive Data
* Incoming reports expected to buoy market sentiment - traders
* Short-term view bullish, long-term bearish on palm - traders
06/02/2017 (Reuters) - Malaysian palm oil futures edged up in the first-half session on Monday buoyed by expectations that data due this week will show a rise in export demand, while production remains weak.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.23 percent at 3,062 ringgit ($692.45) per tonne at the mid-day break. Traded volumes stood at 16,725 lots of 25 tonnes each.
A Kuala Lumpur-based trader said palm was inching upwards, but is expected to trade range-bound towards 3,100 ringgit, in anticipation of positive data for Feb. 1-Feb. 10.
"There are some incoming reports this week on production and exports that would be
supportive to the market. Dalian has not dropped a lot either," the trader added.
"Market is short-term bullish and long-term bearish on palm. (Short-term view is positive as) production has fallen, and with India's monetisation issues being resolved, market is expecting the country to start importing more palm," he added.
Southern Peninsula Palm Oil Millers' Association (SPPOMA) released data last week showing a drop of 21.8 percent in production for January.
Palm output is expected to increase from March onwards, which will drag down the prices, analysts said at an event in India last Friday.
Leading industry analyst Dorab Mistry said palm oil prices could fall to 2,500 ringgit per tonne in June or July in a "knee-jerk reaction at the first signal of rising production, possibly in early or mid-March."
Analyst James Fry's forecast for palm prices echoed Mistry's thoughts as well.
On the Chicago Board Of Trade, the March soybean oil contract gained 0.83 percent.
The May contract for Dalian soybean oil slipped 0.09 percent, while the palm olein contract slid 0.29 percent.
Palm, soy and crude oil prices at 0502 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3245 -5.00 3229 3247 20
MY PALM OIL MAR7 3142 +2.00 3120 3144 673
MY PALM OIL APR7 3062 +7.00 3032 3062 9040
CHINA PALM OLEIN MAY7 6152 -18.00 6118 6170 266504
CHINA SOYOIL MAY7 6878 -6.00 6842 6910 269594
CBOT SOY OIL MAR7 34.17 +2.70 33.91 34.2 4420
INDIA PALM OIL FEB7 579.40 +2.70 577.50 579.4 80
INDIA SOYOIL FEB7 703.05 +2.60 701.5 717.85 1440
NYMEX CRUDE MAR7 54.01 +0.18 53.79 54.05 11787
($1 = 4.4220 ringgit)
($1 = 67.22 Indian rupees)
($1 = 6.8577 Chinese yuan)
* Short-term view bullish, long-term bearish on palm - traders
06/02/2017 (Reuters) - Malaysian palm oil futures edged up in the first-half session on Monday buoyed by expectations that data due this week will show a rise in export demand, while production remains weak.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.23 percent at 3,062 ringgit ($692.45) per tonne at the mid-day break. Traded volumes stood at 16,725 lots of 25 tonnes each.
A Kuala Lumpur-based trader said palm was inching upwards, but is expected to trade range-bound towards 3,100 ringgit, in anticipation of positive data for Feb. 1-Feb. 10.
"There are some incoming reports this week on production and exports that would be
supportive to the market. Dalian has not dropped a lot either," the trader added.
"Market is short-term bullish and long-term bearish on palm. (Short-term view is positive as) production has fallen, and with India's monetisation issues being resolved, market is expecting the country to start importing more palm," he added.
Southern Peninsula Palm Oil Millers' Association (SPPOMA) released data last week showing a drop of 21.8 percent in production for January.
Palm output is expected to increase from March onwards, which will drag down the prices, analysts said at an event in India last Friday.
Leading industry analyst Dorab Mistry said palm oil prices could fall to 2,500 ringgit per tonne in June or July in a "knee-jerk reaction at the first signal of rising production, possibly in early or mid-March."
Analyst James Fry's forecast for palm prices echoed Mistry's thoughts as well.
On the Chicago Board Of Trade, the March soybean oil contract gained 0.83 percent.
The May contract for Dalian soybean oil slipped 0.09 percent, while the palm olein contract slid 0.29 percent.
Palm, soy and crude oil prices at 0502 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3245 -5.00 3229 3247 20
MY PALM OIL MAR7 3142 +2.00 3120 3144 673
MY PALM OIL APR7 3062 +7.00 3032 3062 9040
CHINA PALM OLEIN MAY7 6152 -18.00 6118 6170 266504
CHINA SOYOIL MAY7 6878 -6.00 6842 6910 269594
CBOT SOY OIL MAR7 34.17 +2.70 33.91 34.2 4420
INDIA PALM OIL FEB7 579.40 +2.70 577.50 579.4 80
INDIA SOYOIL FEB7 703.05 +2.60 701.5 717.85 1440
NYMEX CRUDE MAR7 54.01 +0.18 53.79 54.05 11787
($1 = 4.4220 ringgit)
($1 = 67.22 Indian rupees)
($1 = 6.8577 Chinese yuan)