MARKET DEVELOPMENT
VEGOILS-Palm Gains on Weaker Ringgit, But Demand Still Weak
VEGOILS-Palm Gains on Weaker Ringgit, But Demand Still Weak
* Buying subdued due to high crude palm oil prices - trader
* Palm oil may retest support at 2,959 rgt/T - Technicals
17/01/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Thursday supported by a weaker ringgit, but traders said demand for the tropical oil remained weak.
A weaker ringgit usually makes palm oil cheaper for holders of foreign currencies and helps demand. The ringgit weakened 0.2 percent to 4.4540 per dollar by noon. It earlier hit 4.4550, its weakest in a month.
Benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange were up 0.2 percent at 2,973 ringgit ($667.49) a tonne at the midday break.
Traded volumes stood at 37,306 lots of 25 tonnes each at noon.
"The market is up on the weaker ringgit; and exports, based on data from Intertek Testing Services, were higher," said a trader from Kuala Lumpur, referring to data from a cargo surveyor released on Wednesday. It showed a 1.4 percent rise in shipments during the first half of February from last month.
"The market, however, is slowing. We're not seeing much strong buying interest... due to high crude palm oil prices."
Palm oil prices have been trading at over four-year highs on tight market supplies, as the lingering effects of a crop damaging El Nino and monsoon floods lowered output in January.
Production declined 13.4 percent for the full month of January, its sharpest drop in a year, according to data from industry regulator the Malaysian Palm Oil Board. (MYPOMP-CPOTT)
Palm oil may retest a support at 2,959 ringgit per tonne, a break below which could open the way towards the next support at 2,879 ringgit, according to analysis by Wang Tao, a Reuters market analyst for commodities and energy technicals.
In other related edible oils, the March soybean oil contract on the Chicago Board of Trade climbed as much as 0.2 percent, while the May soybean oil contract on the Dalian Commodity Exchange was up 0.4 percent.
The May contract for Dalian palm olein also rose 0.6 percent.
Palm, soy and crude oil prices at 0527 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 3195 +2.00 3178 3211 819
MY PALM OIL APR7 3065 -2.00 3043 3079 11328
MY PALM OIL MAY7 2973 +5.00 2952 2986 15980
CHINA PALM OLEIN MAY7 6140 +38.00 6090 6156 401230
CHINA SOYOIL MAY7 6866 +24.00 6816 6872 238906
CBOT SOY OIL MAR7 34.02 +0.08 33.95 34.09 6589
INDIA PALM OIL FEB7 566.70 -4.40 566.30 570 261
INDIA SOYOIL FEB7 682.8 -5.70 682 686.4 1350
NYMEX CRUDE MAR7 53.03 -0.08 52.96 53.09 4674
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 = 4.4540 ringgit)
($1 = 66.9400 Indian rupees)
($1 = 6.8572 Chinese yuan)
* Palm oil may retest support at 2,959 rgt/T - Technicals
17/01/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Thursday supported by a weaker ringgit, but traders said demand for the tropical oil remained weak.
A weaker ringgit usually makes palm oil cheaper for holders of foreign currencies and helps demand. The ringgit weakened 0.2 percent to 4.4540 per dollar by noon. It earlier hit 4.4550, its weakest in a month.
Benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange were up 0.2 percent at 2,973 ringgit ($667.49) a tonne at the midday break.
Traded volumes stood at 37,306 lots of 25 tonnes each at noon.
"The market is up on the weaker ringgit; and exports, based on data from Intertek Testing Services, were higher," said a trader from Kuala Lumpur, referring to data from a cargo surveyor released on Wednesday. It showed a 1.4 percent rise in shipments during the first half of February from last month.
"The market, however, is slowing. We're not seeing much strong buying interest... due to high crude palm oil prices."
Palm oil prices have been trading at over four-year highs on tight market supplies, as the lingering effects of a crop damaging El Nino and monsoon floods lowered output in January.
Production declined 13.4 percent for the full month of January, its sharpest drop in a year, according to data from industry regulator the Malaysian Palm Oil Board. (MYPOMP-CPOTT)
Palm oil may retest a support at 2,959 ringgit per tonne, a break below which could open the way towards the next support at 2,879 ringgit, according to analysis by Wang Tao, a Reuters market analyst for commodities and energy technicals.
In other related edible oils, the March soybean oil contract on the Chicago Board of Trade climbed as much as 0.2 percent, while the May soybean oil contract on the Dalian Commodity Exchange was up 0.4 percent.
The May contract for Dalian palm olein also rose 0.6 percent.
Palm, soy and crude oil prices at 0527 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 3195 +2.00 3178 3211 819
MY PALM OIL APR7 3065 -2.00 3043 3079 11328
MY PALM OIL MAY7 2973 +5.00 2952 2986 15980
CHINA PALM OLEIN MAY7 6140 +38.00 6090 6156 401230
CHINA SOYOIL MAY7 6866 +24.00 6816 6872 238906
CBOT SOY OIL MAR7 34.02 +0.08 33.95 34.09 6589
INDIA PALM OIL FEB7 566.70 -4.40 566.30 570 261
INDIA SOYOIL FEB7 682.8 -5.70 682 686.4 1350
NYMEX CRUDE MAR7 53.03 -0.08 52.96 53.09 4674
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 = 4.4540 ringgit)
($1 = 66.9400 Indian rupees)
($1 = 6.8572 Chinese yuan)