MARKET DEVELOPMENT
VEGOILS-Palm Slides to Eight-Month Low on Rising Output Forecasts
VEGOILS-Palm Slides to Eight-Month Low on Rising Output Forecasts
* Market hits low of 2,486 rgt/T in evening trade
* Palm oil to test support at 2,538 rgt/T - technicals
(Updates with closing prices, quote)
18/04/2017 (Reuters) - Malaysian palm oil futures lost early gains, sliding to an eight-month low in late trade on Monday, weighed down by expectations of rising output in top producers Malaysia and Indonesia.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,498 ringgit ($567.34) a tonne at the close, having hit 2,486 ringgit for its weakest since Aug. 12.
Palm had been in positive territory, tracking rival oils. It had dropped 4 percent last week, the sharpest weekly decline since Feb. 17.
Traded volumes reached 53,849 lots of 25 tonnes each. "The market is heading lower on the back of expectations that production is going higher," one Kuala Lumpur-based futures trader said, referring to output in the world's second-largest producer Malaysia.
The trader added that the market also forecast rising output data from the Indonesian Palm Oil Association (GAPKI).
Palm oil output in Southeast Asia is expected to rebound this year, notably from the second half of the year as fresh fruit bunch yields recover from the crop-damaging effects of a dry El Nino weather pattern.
Malaysian production jumped 16.3 percent month on month in March for its first monthly gain since September, in line with seasonal trends. (MYPOMP-CPOTT)
Palm oil is expected to test support at 2,538 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm oil prices are also affected by movements in rival edible oils that compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade was up 0.4 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent.
In related vegetable oils, the September contract for palm olein was up 0.4 percent.
Palm, soy and crude oil prices at 1110 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2634 -15.00 2632 2680 1506
MY PALM OIL JUN7 2546 -6.00 2538 2587 11128
MY PALM OIL JUL7 2495 -5.00 2486 2533 25259
CHINA PALM OLEIN SEP7 5228 +22.00 5212 5276 465114
CHINA SOYOIL SEP7 5952 +6.00 5942 6028 577462
CBOT SOY OIL MAY7 31.31 +0.12 31.28 31.59 6307
INDIA PALM OIL APR7 508.50 -8.30 505.40 519.9 1570
INDIA SOYOIL APR7 631 -2.80 630 636.85 5350
NYMEX CRUDE MAY7 52.69 -0.49 52.63 53.08 44684
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 = 4.4030 ringgit)
($1 = 64.4450 Indian rupees)
($1 = 6.8830 Chinese yuan)
* Palm oil to test support at 2,538 rgt/T - technicals
(Updates with closing prices, quote)
18/04/2017 (Reuters) - Malaysian palm oil futures lost early gains, sliding to an eight-month low in late trade on Monday, weighed down by expectations of rising output in top producers Malaysia and Indonesia.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,498 ringgit ($567.34) a tonne at the close, having hit 2,486 ringgit for its weakest since Aug. 12.
Palm had been in positive territory, tracking rival oils. It had dropped 4 percent last week, the sharpest weekly decline since Feb. 17.
Traded volumes reached 53,849 lots of 25 tonnes each. "The market is heading lower on the back of expectations that production is going higher," one Kuala Lumpur-based futures trader said, referring to output in the world's second-largest producer Malaysia.
The trader added that the market also forecast rising output data from the Indonesian Palm Oil Association (GAPKI).
Palm oil output in Southeast Asia is expected to rebound this year, notably from the second half of the year as fresh fruit bunch yields recover from the crop-damaging effects of a dry El Nino weather pattern.
Malaysian production jumped 16.3 percent month on month in March for its first monthly gain since September, in line with seasonal trends. (MYPOMP-CPOTT)
Palm oil is expected to test support at 2,538 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm oil prices are also affected by movements in rival edible oils that compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade was up 0.4 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent.
In related vegetable oils, the September contract for palm olein was up 0.4 percent.
Palm, soy and crude oil prices at 1110 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2634 -15.00 2632 2680 1506
MY PALM OIL JUN7 2546 -6.00 2538 2587 11128
MY PALM OIL JUL7 2495 -5.00 2486 2533 25259
CHINA PALM OLEIN SEP7 5228 +22.00 5212 5276 465114
CHINA SOYOIL SEP7 5952 +6.00 5942 6028 577462
CBOT SOY OIL MAY7 31.31 +0.12 31.28 31.59 6307
INDIA PALM OIL APR7 508.50 -8.30 505.40 519.9 1570
INDIA SOYOIL APR7 631 -2.80 630 636.85 5350
NYMEX CRUDE MAY7 52.69 -0.49 52.63 53.08 44684
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 = 4.4030 ringgit)
($1 = 64.4450 Indian rupees)
($1 = 6.8830 Chinese yuan)