MARKET DEVELOPMENT
VEGOILS-Palm Oil Charts Sharpest Daily Drop in Nearly Two Weeks
VEGOILS-Palm Oil Charts Sharpest Daily Drop in Nearly Two Weeks
* Palm registers third drop in six sessions
* Dragged down by weaker rival oils, technical selling -trader
(Updates with closing prices)
24/03/2017 (Reuters) - Malaysian palm oil futures on Thursday registered their sharpest daily fall in nearly two weeks, weighed down by weaker-performing related edible oils and a technical sell-off.
Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange fell 2.1 percent to 2,771 ringgit ($625.93) a tonne, retreating from the near two-week high of 2,839 ringgit hit in the previous session.
Traded volumes stood at 51,723 lots of 25 tonnes each at the end of the trading day.
"The overseas market is weaker and there has been some technical selling since prices are unable to climb to new highs today," one Kuala Lumpur-based futures trader said, referring to related vegetable oils on China's Dalian Commodity Exchange and the Chicago Board of Trade.
Palm oil prices are affected by the performances of competing edible oils in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade slipped as much as 0.8 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell by up to 1.7 percent.
The September contract for palm olein on the Dalian Commodity Exchange dropped by as much as 2 percent.
Palm oil has been trading range-bound for the past two weeks as slow export demand and uncertainty over output affected sentiment, traders said.
Exports of palm oil products from Malaysia, the world's second-largest producer of the tropical oil, dropped between March 1 and March 20 compared with the corresponding period last month.
Cargo surveyor Intertek Testing Services reported a 3 percent drop in shipments, while Societe Generale de Surveillance saw a decline of 7.9 percent.
There are usually seasonal gains in March, but industry players remain uncertain about the extent of recovery. Palm oil trees are still suffering the effects of a crop-damaging El Nino weather event, which reduces yields of fresh fruit bunches and lowers overall output.
Palm, soy and crude oil prices at 1032 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2934 -42.00 2922 2975 372
MY PALM OIL MAY7 2838 -56.00 2832 2899 3811
MY PALM OIL JUN7 2771 -58.00 2763 2834 27456
CHINA PALM OLEIN SEP7 5540 -114.00 5534 5670 681240
CHINA SOYOIL SEP7 6402 -108.00 6398 6498 527282
CBOT SOY OIL MAY7 33.27 -0.25 33.2 33.55 12565
INDIA PALM OIL MAR7 535.80 +0.60 531.60 536.5 580
INDIA SOYOIL APR7 651.3 +3.90 648 652.25 22410
NYMEX CRUDE MAY7 48.33 +0.29 48.12 48.48 70962
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 = 4.4270 ringgit)
($1 = 65.5100 Indian rupees)
($1 = 6.8861 Chinese yuan)
* Dragged down by weaker rival oils, technical selling -trader
(Updates with closing prices)
24/03/2017 (Reuters) - Malaysian palm oil futures on Thursday registered their sharpest daily fall in nearly two weeks, weighed down by weaker-performing related edible oils and a technical sell-off.
Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange fell 2.1 percent to 2,771 ringgit ($625.93) a tonne, retreating from the near two-week high of 2,839 ringgit hit in the previous session.
Traded volumes stood at 51,723 lots of 25 tonnes each at the end of the trading day.
"The overseas market is weaker and there has been some technical selling since prices are unable to climb to new highs today," one Kuala Lumpur-based futures trader said, referring to related vegetable oils on China's Dalian Commodity Exchange and the Chicago Board of Trade.
Palm oil prices are affected by the performances of competing edible oils in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade slipped as much as 0.8 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell by up to 1.7 percent.
The September contract for palm olein on the Dalian Commodity Exchange dropped by as much as 2 percent.
Palm oil has been trading range-bound for the past two weeks as slow export demand and uncertainty over output affected sentiment, traders said.
Exports of palm oil products from Malaysia, the world's second-largest producer of the tropical oil, dropped between March 1 and March 20 compared with the corresponding period last month.
Cargo surveyor Intertek Testing Services reported a 3 percent drop in shipments, while Societe Generale de Surveillance saw a decline of 7.9 percent.
There are usually seasonal gains in March, but industry players remain uncertain about the extent of recovery. Palm oil trees are still suffering the effects of a crop-damaging El Nino weather event, which reduces yields of fresh fruit bunches and lowers overall output.
Palm, soy and crude oil prices at 1032 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2934 -42.00 2922 2975 372
MY PALM OIL MAY7 2838 -56.00 2832 2899 3811
MY PALM OIL JUN7 2771 -58.00 2763 2834 27456
CHINA PALM OLEIN SEP7 5540 -114.00 5534 5670 681240
CHINA SOYOIL SEP7 6402 -108.00 6398 6498 527282
CBOT SOY OIL MAY7 33.27 -0.25 33.2 33.55 12565
INDIA PALM OIL MAR7 535.80 +0.60 531.60 536.5 580
INDIA SOYOIL APR7 651.3 +3.90 648 652.25 22410
NYMEX CRUDE MAY7 48.33 +0.29 48.12 48.48 70962
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 = 4.4270 ringgit)
($1 = 65.5100 Indian rupees)
($1 = 6.8861 Chinese yuan)