MARKET DEVELOPMENT
VEGOILS-Malaysian Palm Hits 8-Month Low as Rival Oils Weaken
VEGOILS-Malaysian Palm Hits 8-Month Low as Rival Oils Weaken
* Palm down nearly 7 percent since start of April
* Expectations of rising output, weaker demand - trader
* Palm oil may fall to 2,437 ringgit - technical analyst
(Updates with closing prices)
20/04/2017 (Reuters) - Malaysian palm oil futures hit an 8-month low on Wednesday, in a sixth consecutive session of declines, tracking weaker related edible oils and on expectations of rising production and weaker exports, traders said.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 0.3 percent, reaching 2,465 ringgit ($560.42) a tonne at the close of trade.
It had hit an intraday low of 2,450 ringgit, its weakest since Aug. 11, with traded volumes reaching 62,923 lots of 25 tonnes each at the end of trading.
Palm tracked weaker soyoil, while further declines in Dalian olein kept buyers at bay, a futures trader from Kuala Lumpur said, referring to palm olein on China's Dalian Commodity Exchange.
Palm oil is impacted by movements in rival edible oils which compete for a share of the global market.
Soybean oil on the Chicago Board of Trade lost 2.4 percent in the previous session, but was last up 0.2 percent.
In other related vegetable oils, the September soybean oil contract on the Dalian Commodity Exchange fell 2.7 percent, while the September contract for palm olein declined 1.6 percent.
Palm oil prices have been on a steady decline in recent weeks - giving up nearly 7 percent so far this month - as traders sold on concerns of rising output.
Production in Malaysia and Indonesia, which produce about 85 percent of the world's palm oil, is expected to recover as the lingering effects of a crop-damaging El Nino wear off.
Malaysian production rose for the full month of March, up 16.3 percent from February, marking its first monthly gain since September and in line with seasonal trends. (MYPOMP-CPOTT)
Traders expect output growth to pick up further in April and the coming months.
Palm oil may break a support at 2,464 ringgit and fall more to the next support at 2,437 ringgit, a Reuters market analyst for commodities and energy technicals said.
Palm, soy and crude oil prices at 1039 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2594 -13.00 2574 2610 1912
MY PALM OIL JUN7 2518 -7.00 2498 2532 6876
MY PALM OIL JUL7 2465 -8.00 2450 2482 29217
CHINA PALM OLEIN SEP7 5126 -84.00 5084 5162 609456
CHINA SOYOIL SEP7 5794 -158.00 5770 5894 824890
CBOT SOY OIL MAY7 31.2 +0.06 30.99 31.3 9304
INDIA PALM OIL APR7 508.80 +0.30 507.00 511.9 849
INDIA SOYOIL APR7 629 -0.25 628.15 629 2120
NYMEX CRUDE MAY7 52.54 +0.13 52.24 52.62 13360
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 = 4.3985 ringgit)
($1 = 64.5900 Indian rupees)
($1 = 6.8852 Chinese yuan)
* Expectations of rising output, weaker demand - trader
* Palm oil may fall to 2,437 ringgit - technical analyst
(Updates with closing prices)
20/04/2017 (Reuters) - Malaysian palm oil futures hit an 8-month low on Wednesday, in a sixth consecutive session of declines, tracking weaker related edible oils and on expectations of rising production and weaker exports, traders said.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 0.3 percent, reaching 2,465 ringgit ($560.42) a tonne at the close of trade.
It had hit an intraday low of 2,450 ringgit, its weakest since Aug. 11, with traded volumes reaching 62,923 lots of 25 tonnes each at the end of trading.
Palm tracked weaker soyoil, while further declines in Dalian olein kept buyers at bay, a futures trader from Kuala Lumpur said, referring to palm olein on China's Dalian Commodity Exchange.
Palm oil is impacted by movements in rival edible oils which compete for a share of the global market.
Soybean oil on the Chicago Board of Trade lost 2.4 percent in the previous session, but was last up 0.2 percent.
In other related vegetable oils, the September soybean oil contract on the Dalian Commodity Exchange fell 2.7 percent, while the September contract for palm olein declined 1.6 percent.
Palm oil prices have been on a steady decline in recent weeks - giving up nearly 7 percent so far this month - as traders sold on concerns of rising output.
Production in Malaysia and Indonesia, which produce about 85 percent of the world's palm oil, is expected to recover as the lingering effects of a crop-damaging El Nino wear off.
Malaysian production rose for the full month of March, up 16.3 percent from February, marking its first monthly gain since September and in line with seasonal trends. (MYPOMP-CPOTT)
Traders expect output growth to pick up further in April and the coming months.
Palm oil may break a support at 2,464 ringgit and fall more to the next support at 2,437 ringgit, a Reuters market analyst for commodities and energy technicals said.
Palm, soy and crude oil prices at 1039 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY7 2594 -13.00 2574 2610 1912
MY PALM OIL JUN7 2518 -7.00 2498 2532 6876
MY PALM OIL JUL7 2465 -8.00 2450 2482 29217
CHINA PALM OLEIN SEP7 5126 -84.00 5084 5162 609456
CHINA SOYOIL SEP7 5794 -158.00 5770 5894 824890
CBOT SOY OIL MAY7 31.2 +0.06 30.99 31.3 9304
INDIA PALM OIL APR7 508.80 +0.30 507.00 511.9 849
INDIA SOYOIL APR7 629 -0.25 628.15 629 2120
NYMEX CRUDE MAY7 52.54 +0.13 52.24 52.62 13360
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 = 4.3985 ringgit)
($1 = 64.5900 Indian rupees)
($1 = 6.8852 Chinese yuan)