MARKET DEVELOPMENT
VEGOILS-Palm in Line For 4th Day of Gains on Dalian Strength, Falling Output
VEGOILS-Palm in Line For 4th Day of Gains on Dalian Strength, Falling Output
* Palm hits over one-month top of 2,559 rgt/T
* Market gains not seen sustaining-Trader
* Palm may touch 2,551 rgt/T before reversing uptrend-Techs
07/07/2017 (Reuters) - Malaysian palm oil futures rose to their highest in over a month in early trade on Thursday, in line for a fourth consecutive day of gains, tracking strength in related edible oils on China's Dalian Commodity Exchange.
Forecasts of falling production also lent support, traders said. A Reuters poll had forecast production to fall to 1.62 million tonnes in June, down 2.1 percent from the previous month.
End-stocks however are seen up 0.2 percent to 1.56 million tonnes, while exports are likely to drop 8.2 percent to 1.38 million tonnes on-month.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,555 ringgit ($594.60) a tonne at the midday break.
It earlier climbed to 2,559 ringgit, its highest since May 26. Traded volumes stood at 14,430 lots of 25 tonnes each.
"The market is up on Dalian strength. There is also short-covering on production figures," said a futures trader
based in Kuala Lumpur.
"The market will most likely come down later because the gains are overdone."
While palm oil production is seen rising during the second half of the year in line with the seasonal trend, June output is seen falling due to the Ramadan and Eid-al-Fitr holidays as plantation workers go on leave.
June data for Malaysia's palm oil inventories, production and exports is scheduled for release by the Malaysian Palm Oil Board on July 10.
Palm oil prices are also impacted by movements in related edible oils, as they compete for a share in the global edible oils market.
September soybean oil on the Dalian Commodity Exchange was up 0.7 percent, while the September palm olein contract rose 1.8 percent.
In other related oils, soybean oil on the Chicago Board of Trade was down 0.6 percent.
Palm oil may briefly touch a resistance at 2,551 ringgit per tonne before reversing its uptrend and falling towards 2,522 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0534 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL7 2684 +14.00 2670 2688 84
MY PALM OIL AUG7 2605 +22.00 2589 2607 1239
MY PALM OIL SEP7 2555 +17.00 2540 2559 6448
CHINA PALM OLEIN SEP7 5418 +98.00 5342 5442 486670
CHINA SOYOIL SEP7 5986 +40.00 5952 6026 364534
CBOT SOY OIL DEC7 33.52 -0.17 33.43 33.71 4674
INDIA PALM OIL JUL7 485.90 +1.00 484.00 486.1 192
INDIA SOYOIL JUL7 643 -2.90 642.9 644.35 2190
NYMEX CRUDE AUG7 45.43 +0.30 45.20 45.78 37226
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 = 4.2970 ringgit)
($1 = 64.7650 Indian rupees)
($1 = 6.8020 Chinese yuan)
* Market gains not seen sustaining-Trader
* Palm may touch 2,551 rgt/T before reversing uptrend-Techs
07/07/2017 (Reuters) - Malaysian palm oil futures rose to their highest in over a month in early trade on Thursday, in line for a fourth consecutive day of gains, tracking strength in related edible oils on China's Dalian Commodity Exchange.
Forecasts of falling production also lent support, traders said. A Reuters poll had forecast production to fall to 1.62 million tonnes in June, down 2.1 percent from the previous month.
End-stocks however are seen up 0.2 percent to 1.56 million tonnes, while exports are likely to drop 8.2 percent to 1.38 million tonnes on-month.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,555 ringgit ($594.60) a tonne at the midday break.
It earlier climbed to 2,559 ringgit, its highest since May 26. Traded volumes stood at 14,430 lots of 25 tonnes each.
"The market is up on Dalian strength. There is also short-covering on production figures," said a futures trader
based in Kuala Lumpur.
"The market will most likely come down later because the gains are overdone."
While palm oil production is seen rising during the second half of the year in line with the seasonal trend, June output is seen falling due to the Ramadan and Eid-al-Fitr holidays as plantation workers go on leave.
June data for Malaysia's palm oil inventories, production and exports is scheduled for release by the Malaysian Palm Oil Board on July 10.
Palm oil prices are also impacted by movements in related edible oils, as they compete for a share in the global edible oils market.
September soybean oil on the Dalian Commodity Exchange was up 0.7 percent, while the September palm olein contract rose 1.8 percent.
In other related oils, soybean oil on the Chicago Board of Trade was down 0.6 percent.
Palm oil may briefly touch a resistance at 2,551 ringgit per tonne before reversing its uptrend and falling towards 2,522 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0534 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL7 2684 +14.00 2670 2688 84
MY PALM OIL AUG7 2605 +22.00 2589 2607 1239
MY PALM OIL SEP7 2555 +17.00 2540 2559 6448
CHINA PALM OLEIN SEP7 5418 +98.00 5342 5442 486670
CHINA SOYOIL SEP7 5986 +40.00 5952 6026 364534
CBOT SOY OIL DEC7 33.52 -0.17 33.43 33.71 4674
INDIA PALM OIL JUL7 485.90 +1.00 484.00 486.1 192
INDIA SOYOIL JUL7 643 -2.90 642.9 644.35 2190
NYMEX CRUDE AUG7 45.43 +0.30 45.20 45.78 37226
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 = 4.2970 ringgit)
($1 = 64.7650 Indian rupees)
($1 = 6.8020 Chinese yuan)