MARKET DEVELOPMENT
VEGOILS-Palm Falls For 4th Day on Weaker Rival Oils, Stronger Ringgit
VEGOILS-Palm Falls For 4th Day on Weaker Rival Oils, Stronger Ringgit
* Palm hits over one-month low of 2,469 rgt/T
* Market earlier up on stronger export data - traders
* Palm may bounce to 2,523 rgt/T before falling - technicals
(Updates with closing prices, quote)
01/06/2017 (Reuters) - Malaysian palm oil futures fell for a fourth consecutive session on Wednesday, hitting a more than one-month low on a stronger ringgit and weaker related edible oils.
The market was earlier up on expectations of stronger export data from cargo surveyors, but traders said they anticipated a market decline later in the day on strong selling pressure.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,499 ringgit ($584.01) a tonne at the close. It earlier fell to 2,469 ringgit a tonne, its weakest since April 25.
Traded volumes stood at 60,659 lots of 25 tonnes each at the close.
Despite stronger export data, the market fell on weaker soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange, as well as a stronger ringgit, said a Kuala Lumpur based trader.
A stronger ringgit, palm's traded currency, typically weighs on palm's prices as it makes the tropical oil more expensive for holders of foreign currencies. The currency was last up 0.1 percent at 4.2790 against the dollar on Wednesday evening.
Palm oil shipments from Malaysia, the world's second largest producer after Indonesia, showed a 16 percent rise for the ful month of May versus April, led by rising exports to India, according to data from ITS that came out during the market's midday break.
Another cargo surveyor, Societe Generale de Surveillance, reported a 15.4 percent rise in the same time period.
Palm oil buyers had stocked up on purchases during the month of May ahead of the Muslim fasting month of Ramadan which began on Saturday.
The event sees Muslims in regions such as India, Pakistan and the Middle East break day-long fasts with communal feasting, incurring higher usage of palm oil for cooking.
Palm oil prices are also impacted by soyoil prices, as they compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade was down 0.4 percent, while the September soybean oil contract on the Dalian Commodity Exchange was down 3.3 percent.
The September contract for palm olein declined 3.1 percent.
The palm oil August contract may bounce moderately to a resistance at 2,523 ringgit per tonne before falling again, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2749 -8.00 2727 2770 1190
MY PALM OIL JUL7 2622 +12.00 2590 2639 4274
MY PALM OIL AUG7 2497 -5.00 2469 2518 28498
CHINA PALM OLEIN SEP7 5244 -170.00 5240 5332 403030
CHINA SOYOIL SEP7 5670 -196.00 5662 5778 437292
CBOT SOY OIL JUL7 31.29 -0.13 31.2 31.57 8993
INDIA PALM OIL MAY7 512.40 +0.50 511.90 512.6 717
INDIA SOYOIL JUN7 617.4 +2.40 615 618.65 10680
NYMEX CRUDE JUL7 48.67 -0.99 48.63 49.71 143776
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 = 4.2790 ringgit)
($1 = 64.5125 Indian rupees)
($1 = 6.8100 Chinese yuan)
* Market earlier up on stronger export data - traders
* Palm may bounce to 2,523 rgt/T before falling - technicals
(Updates with closing prices, quote)
01/06/2017 (Reuters) - Malaysian palm oil futures fell for a fourth consecutive session on Wednesday, hitting a more than one-month low on a stronger ringgit and weaker related edible oils.
The market was earlier up on expectations of stronger export data from cargo surveyors, but traders said they anticipated a market decline later in the day on strong selling pressure.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,499 ringgit ($584.01) a tonne at the close. It earlier fell to 2,469 ringgit a tonne, its weakest since April 25.
Traded volumes stood at 60,659 lots of 25 tonnes each at the close.
Despite stronger export data, the market fell on weaker soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange, as well as a stronger ringgit, said a Kuala Lumpur based trader.
A stronger ringgit, palm's traded currency, typically weighs on palm's prices as it makes the tropical oil more expensive for holders of foreign currencies. The currency was last up 0.1 percent at 4.2790 against the dollar on Wednesday evening.
Palm oil shipments from Malaysia, the world's second largest producer after Indonesia, showed a 16 percent rise for the ful month of May versus April, led by rising exports to India, according to data from ITS that came out during the market's midday break.
Another cargo surveyor, Societe Generale de Surveillance, reported a 15.4 percent rise in the same time period.
Palm oil buyers had stocked up on purchases during the month of May ahead of the Muslim fasting month of Ramadan which began on Saturday.
The event sees Muslims in regions such as India, Pakistan and the Middle East break day-long fasts with communal feasting, incurring higher usage of palm oil for cooking.
Palm oil prices are also impacted by soyoil prices, as they compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade was down 0.4 percent, while the September soybean oil contract on the Dalian Commodity Exchange was down 3.3 percent.
The September contract for palm olein declined 3.1 percent.
The palm oil August contract may bounce moderately to a resistance at 2,523 ringgit per tonne before falling again, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 1045 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2749 -8.00 2727 2770 1190
MY PALM OIL JUL7 2622 +12.00 2590 2639 4274
MY PALM OIL AUG7 2497 -5.00 2469 2518 28498
CHINA PALM OLEIN SEP7 5244 -170.00 5240 5332 403030
CHINA SOYOIL SEP7 5670 -196.00 5662 5778 437292
CBOT SOY OIL JUL7 31.29 -0.13 31.2 31.57 8993
INDIA PALM OIL MAY7 512.40 +0.50 511.90 512.6 717
INDIA SOYOIL JUN7 617.4 +2.40 615 618.65 10680
NYMEX CRUDE JUL7 48.67 -0.99 48.63 49.71 143776
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 = 4.2790 ringgit)
($1 = 64.5125 Indian rupees)
($1 = 6.8100 Chinese yuan)