MARKET DEVELOPMENT
VEGOILS-Palm Rises on Stronger Soyoil; Ringgit to Cap Gains
VEGOILS-Palm Rises on Stronger Soyoil; Ringgit to Cap Gains
* Palm slightly up 0.1 pct at closing trade
* Ringgit hits near seven-month top
* Market also anticipates rising production to weigh on prices - Trader
(Updates with closing prices)
06/06/2017 (Reuters) - Malaysian palm oil futures on Monday rose slightly at the close of trade, recovering from the previous session's losses, as gains in stronger-performing soyoil boosted sentiment.
However, palm's gains are expected to be limited. Traders expect a stronger ringgit and the forecast of better output to curb gains.
A stronger ringgit, palm's traded currency, typically makes the tropical oil cheaper for holders of foreign currencies. The ringgit hit its strongest in nearly seven months on Monday. It was last up 0.4 percent at 4.2620 per dollar.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,499 ringgit ($586.34) a tonne at the midday break.
Traded volumes stood at 25,368 lots of 25 tonnes each at Monday's close.
"Palm recovered in line with its higher-performing rival oilseed soy," a Kuala Lumpur futures trader said, referring to soyoil traded on the Chicago Board of Trade and the Dalian Commodity Exchange.
Palm oil prices are typically impacted by the movements of soyoil, as both the vegetable oils compete for a share in the global edible oils market.
Soybean oil on the Chicago Board of Trade rose 0.3 percent, while the September soybean oil contract on the Dalian Commodity Exchange gained 0.5 percent.
"We believe sentiment has been weakened by the stronger ringgit and in anticipation of higher production as we approach the second half of the year," said another futures trader in Kuala Lumpur.
Palm oil production is seen rising in the second half of this year in line with the seasonal trend, and as it recovers from the crop-damaging effects of a dry weather El Nino which hit trees in 2015.
Malaysian output for April rose 5.7 percent from March to 1.55 million tonnes, according to industry regulator data earlier this month. (MYPOMP-CPOTT)
In other related oils, the September contract for palm olein was up 0.3 percent.
Palm, soy and crude oil prices at 1043 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2743 +13.00 2720 2746 165
MY PALM OIL JUL7 2612 +8.00 2600 2630 1045
MY PALM OIL AUG7 2494 +2.00 2487 2524 15181
CHINA PALM OLEIN SEP7 5268 +14.00 5188 5338 539716
CHINA SOYOIL SEP7 5712 +26.00 5624 5740 442794
CBOT SOY OIL JUL7 31.09 +0.08 31.04 31.29 5921
INDIA PALM OIL JUN7 495.80 +3.00 492.10 496.9 747
INDIA SOYOIL JUN7 620.5 +3.15 616.05 621.4 5360
NYMEX CRUDE JUL7 47.53 -0.13 47.42 48.42 161907
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 = 4.2620 ringgit)
* Ringgit hits near seven-month top
* Market also anticipates rising production to weigh on prices - Trader
(Updates with closing prices)
06/06/2017 (Reuters) - Malaysian palm oil futures on Monday rose slightly at the close of trade, recovering from the previous session's losses, as gains in stronger-performing soyoil boosted sentiment.
However, palm's gains are expected to be limited. Traders expect a stronger ringgit and the forecast of better output to curb gains.
A stronger ringgit, palm's traded currency, typically makes the tropical oil cheaper for holders of foreign currencies. The ringgit hit its strongest in nearly seven months on Monday. It was last up 0.4 percent at 4.2620 per dollar.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,499 ringgit ($586.34) a tonne at the midday break.
Traded volumes stood at 25,368 lots of 25 tonnes each at Monday's close.
"Palm recovered in line with its higher-performing rival oilseed soy," a Kuala Lumpur futures trader said, referring to soyoil traded on the Chicago Board of Trade and the Dalian Commodity Exchange.
Palm oil prices are typically impacted by the movements of soyoil, as both the vegetable oils compete for a share in the global edible oils market.
Soybean oil on the Chicago Board of Trade rose 0.3 percent, while the September soybean oil contract on the Dalian Commodity Exchange gained 0.5 percent.
"We believe sentiment has been weakened by the stronger ringgit and in anticipation of higher production as we approach the second half of the year," said another futures trader in Kuala Lumpur.
Palm oil production is seen rising in the second half of this year in line with the seasonal trend, and as it recovers from the crop-damaging effects of a dry weather El Nino which hit trees in 2015.
Malaysian output for April rose 5.7 percent from March to 1.55 million tonnes, according to industry regulator data earlier this month. (MYPOMP-CPOTT)
In other related oils, the September contract for palm olein was up 0.3 percent.
Palm, soy and crude oil prices at 1043 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN7 2743 +13.00 2720 2746 165
MY PALM OIL JUL7 2612 +8.00 2600 2630 1045
MY PALM OIL AUG7 2494 +2.00 2487 2524 15181
CHINA PALM OLEIN SEP7 5268 +14.00 5188 5338 539716
CHINA SOYOIL SEP7 5712 +26.00 5624 5740 442794
CBOT SOY OIL JUL7 31.09 +0.08 31.04 31.29 5921
INDIA PALM OIL JUN7 495.80 +3.00 492.10 496.9 747
INDIA SOYOIL JUN7 620.5 +3.15 616.05 621.4 5360
NYMEX CRUDE JUL7 47.53 -0.13 47.42 48.42 161907
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 = 4.2620 ringgit)