MARKET DEVELOPMENT
VEGOILS-Palm Snaps Gain on Weaker Overnight Soyoil, Hits 6-Mth Low
VEGOILS-Palm Snaps Gain on Weaker Overnight Soyoil, Hits 6-Mth Low
* Market in line for second decline in three sessions
* Touches near six-month low of 2,627 rgt/T
* Palm oil to hover above 2,638 rgt/T - Technicals
(Updates with closing prices)
05/04/2017 (Reuters) - Malaysian palm oil futures hit a near six-month low on Tuesday, tracking rival soyoil on the Chicago Board of Trade which fell nearly 1 percent overnight, and ahead of the release of official output and export data next week.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1.1 percent at 2,631 ringgit ($593.91) a tonne at the end of the trading day. It earlier hit 2,627 ringgit, its weakest since Oct. 14.
Traded volumes stood at 48,853 lots of 25 tonnes each.
"The market fell tracking soyoil, while waiting for new leads," said a futures trader in Kuala Lumpur.
Upcoming inventory data from the Malaysian Palm Oil Board (MPOB) will be impacted by local consumption, as production and exports are "expected to offset each other," the trader added.
Data from official industry regulator MPOB is forecast to show rising production and exports, and is scheduled for release on April 10.
Output of the tropical oil at the world's second largest producer could rise in March, in line with the seasonal trend, but production growth is expected to be small, according to traders.
In February, production declined 1.4 percent on-month, while exports saw a 14 percent drop. (MYPOMP-CPOTT) (MYPOME-PO)
Palm oil shipments for March saw a near 7 percent gain from a month earlier, cargo surveyor data showed last week.
Palm oil seems to have found a support at 2,638 ringgit per tonne, and it may continue to hover above this level or bounce towards a range of 2,685-2,715 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm oil is also impacted by the price movements of related edible oils, including soyoil, as they compete for a share in the global vegetable oils market.
On Tuesday, CBOT soybean oil was down 0.1 percent. China's Dalian Commodity Exchange is closed for a national holiday.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2860 -1.00 2847 2868 189
MY PALM OIL MAY7 2727 -24.00 2722 2752 2874
MY PALM OIL JUN7 2632 -31.00 2627 2657 20241
CHINA PALM OLEIN SEP7 0 +0.00 0 0 0
CHINA SOYOIL SEP7 0 +0.00 0 0 0
CBOT SOY OIL MAY7 31.4 -0.02 31.33 31.58 4912
INDIA PALM OIL APR7 0.00 +0.00 0.00 0 0
INDIA SOYOIL APR7 0 +0.00 0 0 0
NYMEX CRUDE MAY7 50.46 +0.22 49.88 50.57 92806
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 = 4.4300 ringgit)
($1 = 64.9600 Indian rupees)
($1 = 6.8832 Chinese yuan)
* Touches near six-month low of 2,627 rgt/T
* Palm oil to hover above 2,638 rgt/T - Technicals
(Updates with closing prices)
05/04/2017 (Reuters) - Malaysian palm oil futures hit a near six-month low on Tuesday, tracking rival soyoil on the Chicago Board of Trade which fell nearly 1 percent overnight, and ahead of the release of official output and export data next week.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1.1 percent at 2,631 ringgit ($593.91) a tonne at the end of the trading day. It earlier hit 2,627 ringgit, its weakest since Oct. 14.
Traded volumes stood at 48,853 lots of 25 tonnes each.
"The market fell tracking soyoil, while waiting for new leads," said a futures trader in Kuala Lumpur.
Upcoming inventory data from the Malaysian Palm Oil Board (MPOB) will be impacted by local consumption, as production and exports are "expected to offset each other," the trader added.
Data from official industry regulator MPOB is forecast to show rising production and exports, and is scheduled for release on April 10.
Output of the tropical oil at the world's second largest producer could rise in March, in line with the seasonal trend, but production growth is expected to be small, according to traders.
In February, production declined 1.4 percent on-month, while exports saw a 14 percent drop. (MYPOMP-CPOTT) (MYPOME-PO)
Palm oil shipments for March saw a near 7 percent gain from a month earlier, cargo surveyor data showed last week.
Palm oil seems to have found a support at 2,638 ringgit per tonne, and it may continue to hover above this level or bounce towards a range of 2,685-2,715 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm oil is also impacted by the price movements of related edible oils, including soyoil, as they compete for a share in the global vegetable oils market.
On Tuesday, CBOT soybean oil was down 0.1 percent. China's Dalian Commodity Exchange is closed for a national holiday.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2860 -1.00 2847 2868 189
MY PALM OIL MAY7 2727 -24.00 2722 2752 2874
MY PALM OIL JUN7 2632 -31.00 2627 2657 20241
CHINA PALM OLEIN SEP7 0 +0.00 0 0 0
CHINA SOYOIL SEP7 0 +0.00 0 0 0
CBOT SOY OIL MAY7 31.4 -0.02 31.33 31.58 4912
INDIA PALM OIL APR7 0.00 +0.00 0.00 0 0
INDIA SOYOIL APR7 0 +0.00 0 0 0
NYMEX CRUDE MAY7 50.46 +0.22 49.88 50.57 92806
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 = 4.4300 ringgit)
($1 = 64.9600 Indian rupees)
($1 = 6.8832 Chinese yuan)