MARKET DEVELOPMENT
VEGOILS-Palm Oil Falls to Near Two Month Low on Rising Output, Weaker Demand
VEGOILS-Palm Oil Falls to Near Two Month Low on Rising Output, Weaker Demand
* Palm sees second session of losses in four
* Market sees sharpest daily drop since May 26
* Bearish fundamentals weigh down on palm - trader
(Updates with closing prices)
08/06/2017 (Reuters) - Malaysian palm oil futures saw a second session of declines in four on Wednesday, slipping to a near two month low on forecasts for rising output and falling export demand, traders said.
The benchmark palm oil contract for August delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was down 1.8 percent at 2,455 ringgit ($576.43) a tonne at the close of trade, its sharpest daily fall in over a week.
Palm futures shed early gains and closed flat in the previous session. They are down 1.7 percent for the week, in line for a fourth straight week of declines. POI/
Traded volumes stood at 52,516 lots of 25 tonnes each in the evening.
"Market is down as production figures are coming up quite strongly," said a futures trader from Kuala Lumpur. "Exports for the months of June and July are bad, as demand comes off after Ramadan."
Palm oil output in Malaysia, the world's second-largest producer of the tropical oil, is seen gaining in the second half of this year on seasonal demand and as it recovers from the crop-damaging effects of El Nino.
May production likely rose 5.5 percent to 1.63 million tonnes from the previous month, according to a Reuters survey of planters, traders and analysts. PALM/POLL
The survey showed exports in May jumped 13.6 percent month-on-month to 1.46 million tonnes due to Ramadan demand.
The holy festival, which began late May this year, sees many Muslims break day-long fasts with communal feasting. Palm oil is commonly used as cooking oil or an ingredient.
However, palm oil shipments are seen falling after the festive season of Eid-al-Fitr, the holiday that marks the end of the fasting period, on less consumption and lower demand for the tropical oil.
In other related oils, soybean oil BOv1 on the Chicago Board of Trade fell 0.2 percent, while the September soybean oil contract on the Dalian Commodity Exchange DBYcv1 gained 0.3 percent.
The September contract for palm olein DCPcv1 slid as much as 1.2 percent.
Palm oil prices are typically impacted by the performance of related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1131 GMT Contract
Month Last Change Low High Volume
MY PALM OIL JUN7 2707 -31.00 2707 2728 931
MY PALM OIL JUL7 2560 -50.00 2560 2608 3226
MY PALM OIL AUG7 2454 -44.00 2452 2502 22008
CHINA PALM OLEIN SEP7 5178 -64.00 5162 5286 620098
CHINA SOYOIL SEP7 5728 +14.00 5704 5788 436114
CBOT SOY OIL JUL7 31.33 -0.06 31.3 31.52 4625
INDIA PALM OIL JUN7 491.80 -3.10 491.40 495.8 1398
INDIA SOYOIL JUN7 629.4 +2.80 625 631.2 17210
NYMEX CRUDE JUL7 47.87 -0.32 47.77 48.23 154104
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 = 4.2590 ringgit)
($1 = 64.3325 Indian rupees)
($1 = 6.7961 Chinese yuan)
* Market sees sharpest daily drop since May 26
* Bearish fundamentals weigh down on palm - trader
(Updates with closing prices)
08/06/2017 (Reuters) - Malaysian palm oil futures saw a second session of declines in four on Wednesday, slipping to a near two month low on forecasts for rising output and falling export demand, traders said.
The benchmark palm oil contract for August delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was down 1.8 percent at 2,455 ringgit ($576.43) a tonne at the close of trade, its sharpest daily fall in over a week.
Palm futures shed early gains and closed flat in the previous session. They are down 1.7 percent for the week, in line for a fourth straight week of declines. POI/
Traded volumes stood at 52,516 lots of 25 tonnes each in the evening.
"Market is down as production figures are coming up quite strongly," said a futures trader from Kuala Lumpur. "Exports for the months of June and July are bad, as demand comes off after Ramadan."
Palm oil output in Malaysia, the world's second-largest producer of the tropical oil, is seen gaining in the second half of this year on seasonal demand and as it recovers from the crop-damaging effects of El Nino.
May production likely rose 5.5 percent to 1.63 million tonnes from the previous month, according to a Reuters survey of planters, traders and analysts. PALM/POLL
The survey showed exports in May jumped 13.6 percent month-on-month to 1.46 million tonnes due to Ramadan demand.
The holy festival, which began late May this year, sees many Muslims break day-long fasts with communal feasting. Palm oil is commonly used as cooking oil or an ingredient.
However, palm oil shipments are seen falling after the festive season of Eid-al-Fitr, the holiday that marks the end of the fasting period, on less consumption and lower demand for the tropical oil.
In other related oils, soybean oil BOv1 on the Chicago Board of Trade fell 0.2 percent, while the September soybean oil contract on the Dalian Commodity Exchange DBYcv1 gained 0.3 percent.
The September contract for palm olein DCPcv1 slid as much as 1.2 percent.
Palm oil prices are typically impacted by the performance of related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1131 GMT Contract
Month Last Change Low High Volume
MY PALM OIL JUN7 2707 -31.00 2707 2728 931
MY PALM OIL JUL7 2560 -50.00 2560 2608 3226
MY PALM OIL AUG7 2454 -44.00 2452 2502 22008
CHINA PALM OLEIN SEP7 5178 -64.00 5162 5286 620098
CHINA SOYOIL SEP7 5728 +14.00 5704 5788 436114
CBOT SOY OIL JUL7 31.33 -0.06 31.3 31.52 4625
INDIA PALM OIL JUN7 491.80 -3.10 491.40 495.8 1398
INDIA SOYOIL JUN7 629.4 +2.80 625 631.2 17210
NYMEX CRUDE JUL7 47.87 -0.32 47.77 48.23 154104
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 = 4.2590 ringgit)
($1 = 64.3325 Indian rupees)
($1 = 6.7961 Chinese yuan)