MARKET DEVELOPMENT
VEGOILS-Palm Registers Sharpest Daily Gain in A Week on Demand Strength
VEGOILS-Palm Registers Sharpest Daily Gain in A Week on Demand Strength
* Market up on Ramadan demand
* Traders say direction remains uncertain
* Palm oil neutral in range of 2,578-2614 rgt/T -technicals
(Updates with closing prices)
18/05/2017 (Reuters) - Malaysian palm oil futures registered the sharpest daily gains in a week, lifted 1.3 percent on Wednesday evening by strong local and overseas demand.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange reached 2,643 ringgit ($611.66) a tonne by the close.
Traded volumes stood at 52,291 lots of 25 tonnes each at the end of the trading day.
"The market is up due to stronger physical demand," one Kuala Lumpur trader said, attributing the rise in demand to the forthcoming fasting month of Ramadan, during which Muslims break day-long fasts with communal feasting that increases palm oil use for cooking.
Malaysian shipments of palm oil products rose 7-8.9 percent in the first half of May compared with the same period last month, cargo surveyor data showed.
Another trader said that local demand added to the stronger take-up of palm oil but that the market overall lacked strong direction.
Rising production is expected to weigh on palm oil prices, which have already fallen from five-year highs at the start of the year.
Palm oil output in Malaysia, the world's No.2 producer of the tropical oil, is expected to rise until the third quarter of the year in line with the seasonal trend and as the crop-damaging effects of El Nino wear off.
The palm oil August contract looks neutral in a narrow range of 2,578-2,614 ringgit a tonne, and an escape could suggest a direction, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade was up 0.9 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 0.3 percent.
The September contract for palm olein was up 0.8 percent.
Palm prices are affected by the movements of rival oilseed soy, which competes for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1040 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2880 +52.00 2815 2886 1786
MY PALM OIL JUL7 2740 +52.00 2677 2742 5679
MY PALM OIL AUG7 2641 +33.00 2598 2646 25279
CHINA PALM OLEIN SEP7 5536 +42.00 5460 5556 648530
CHINA SOYOIL SEP7 6048 +18.00 5976 6060 505778
CBOT SOY OIL JUL7 33.3 +0.29 32.96 33.31 8008
INDIA PALM OIL MAY7 514.20 +4.70 510.60 514.6 985
INDIA SOYOIL MAY7 631.9 +3.00 629.1 631.9 620
NYMEX CRUDE JUN7 48.97 +0.31 48.03 49.02 114480
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 = 4.3210 ringgit)
($1 = 64.1000 Indian rupees)
($1 = 6.8881 Chinese yuan)
* Traders say direction remains uncertain
* Palm oil neutral in range of 2,578-2614 rgt/T -technicals
(Updates with closing prices)
18/05/2017 (Reuters) - Malaysian palm oil futures registered the sharpest daily gains in a week, lifted 1.3 percent on Wednesday evening by strong local and overseas demand.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange reached 2,643 ringgit ($611.66) a tonne by the close.
Traded volumes stood at 52,291 lots of 25 tonnes each at the end of the trading day.
"The market is up due to stronger physical demand," one Kuala Lumpur trader said, attributing the rise in demand to the forthcoming fasting month of Ramadan, during which Muslims break day-long fasts with communal feasting that increases palm oil use for cooking.
Malaysian shipments of palm oil products rose 7-8.9 percent in the first half of May compared with the same period last month, cargo surveyor data showed.
Another trader said that local demand added to the stronger take-up of palm oil but that the market overall lacked strong direction.
Rising production is expected to weigh on palm oil prices, which have already fallen from five-year highs at the start of the year.
Palm oil output in Malaysia, the world's No.2 producer of the tropical oil, is expected to rise until the third quarter of the year in line with the seasonal trend and as the crop-damaging effects of El Nino wear off.
The palm oil August contract looks neutral in a narrow range of 2,578-2,614 ringgit a tonne, and an escape could suggest a direction, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related vegetable oils, soybean oil on the Chicago Board of Trade was up 0.9 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 0.3 percent.
The September contract for palm olein was up 0.8 percent.
Palm prices are affected by the movements of rival oilseed soy, which competes for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1040 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2880 +52.00 2815 2886 1786
MY PALM OIL JUL7 2740 +52.00 2677 2742 5679
MY PALM OIL AUG7 2641 +33.00 2598 2646 25279
CHINA PALM OLEIN SEP7 5536 +42.00 5460 5556 648530
CHINA SOYOIL SEP7 6048 +18.00 5976 6060 505778
CBOT SOY OIL JUL7 33.3 +0.29 32.96 33.31 8008
INDIA PALM OIL MAY7 514.20 +4.70 510.60 514.6 985
INDIA SOYOIL MAY7 631.9 +3.00 629.1 631.9 620
NYMEX CRUDE JUN7 48.97 +0.31 48.03 49.02 114480
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 = 4.3210 ringgit)
($1 = 64.1000 Indian rupees)
($1 = 6.8881 Chinese yuan)