MARKET DEVELOPMENT
VEGOILS-Palm Oil Snaps Five Day Winning Streak As Demand Weakens
VEGOILS-Palm Oil Snaps Five Day Winning Streak As Demand Weakens
* Palm sees first fall in six sessions
* Traders expected market to drop on expectations of bearish price forecasts
* Global output seen rising 11 percent to 65 mln T in 2017 - senior industry official
(Updates latest prices)
08/03/2017 (Reuters) - Malaysian palm oil futures fell on Tuesday evening to snap five sessions of gains, as it dipped on weak demand.
At the close of trade, benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange were down 1.2 percent at 2,859 ringgit ($643.19) a tonne. In the previous session, they hit 2,898 ringgit, their highest in more than two weeks.
Traded volumes stood at 26,234 lots of 25 tonnes each on Tuesday evening.
"The market is down as there are no buyers," said a palm oil trader in Kuala Lumpur.
Palm oil exports from Malaysia, the world's second-largest producer, fell between 12 percent and 14 percent in February compared with a month earlier, showed cargo surveyor data.
Traders had also expected the market to drop due to expectations of bearish price forecasts at an industry conference in Kuala Lumpur this week.
Palm prices are seen weakening between now and the second-half of this year as production levels are expected to recover when the effects of a crop-damaging El Nino wear off. World palm oil production is forecast to climb 11 percent to 65 million tonnes this year from 58.3 million tonnes a year ago as a near-perfect weather boosts yields, a senior industry official said at the conference on Tuesday.
In related vegetable oils, soybean oil on the Chicago Board of Trade dropped as much as 0.9 percent, while the May soybean oil contract on the Dalian Commodity Exchange declined up to 1.4 percent.
The May contract for palm olein on the Dalian Commodity Exchange lost 0.6 percent.
Palm, soy and crude oil prices at 1051 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 2974 -36.00 2950 2974 87
MY PALM OIL APR7 2924 -26.00 2907 2933 1711
MY PALM OIL MAY7 2860 -34.00 2841 2875 14764
CHINA PALM OLEIN MAY7 5876 -34.00 5852 5940 386190
CHINA SOYOIL MAY7 6586 -90.00 6568 6688 409912
CBOT SOY OIL MAY7 33.96 +0.00 33.93 34.32 6554
INDIA PALM OIL MAR7 535.10 -3.40 533.60 539.5 1759
INDIA SOYOIL MAR7 661.15 -1.75 658.8 663.3 14620
NYMEX CRUDE APR7 53.33 +0.13 53.02 53.41 64324
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 = 4.4450 ringgit)
($1 = 66.6800 Indian rupees)
($1 = 6.8975 Chinese yuan)
* Traders expected market to drop on expectations of bearish price forecasts
* Global output seen rising 11 percent to 65 mln T in 2017 - senior industry official
(Updates latest prices)
08/03/2017 (Reuters) - Malaysian palm oil futures fell on Tuesday evening to snap five sessions of gains, as it dipped on weak demand.
At the close of trade, benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange were down 1.2 percent at 2,859 ringgit ($643.19) a tonne. In the previous session, they hit 2,898 ringgit, their highest in more than two weeks.
Traded volumes stood at 26,234 lots of 25 tonnes each on Tuesday evening.
"The market is down as there are no buyers," said a palm oil trader in Kuala Lumpur.
Palm oil exports from Malaysia, the world's second-largest producer, fell between 12 percent and 14 percent in February compared with a month earlier, showed cargo surveyor data.
Traders had also expected the market to drop due to expectations of bearish price forecasts at an industry conference in Kuala Lumpur this week.
Palm prices are seen weakening between now and the second-half of this year as production levels are expected to recover when the effects of a crop-damaging El Nino wear off. World palm oil production is forecast to climb 11 percent to 65 million tonnes this year from 58.3 million tonnes a year ago as a near-perfect weather boosts yields, a senior industry official said at the conference on Tuesday.
In related vegetable oils, soybean oil on the Chicago Board of Trade dropped as much as 0.9 percent, while the May soybean oil contract on the Dalian Commodity Exchange declined up to 1.4 percent.
The May contract for palm olein on the Dalian Commodity Exchange lost 0.6 percent.
Palm, soy and crude oil prices at 1051 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR7 2974 -36.00 2950 2974 87
MY PALM OIL APR7 2924 -26.00 2907 2933 1711
MY PALM OIL MAY7 2860 -34.00 2841 2875 14764
CHINA PALM OLEIN MAY7 5876 -34.00 5852 5940 386190
CHINA SOYOIL MAY7 6586 -90.00 6568 6688 409912
CBOT SOY OIL MAY7 33.96 +0.00 33.93 34.32 6554
INDIA PALM OIL MAR7 535.10 -3.40 533.60 539.5 1759
INDIA SOYOIL MAR7 661.15 -1.75 658.8 663.3 14620
NYMEX CRUDE APR7 53.33 +0.13 53.02 53.41 64324
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 = 4.4450 ringgit)
($1 = 66.6800 Indian rupees)
($1 = 6.8975 Chinese yuan)