MARKET DEVELOPMENT
VEGOILS-Palm Hits 2-Week High on Stronger Soy
VEGOILS-Palm Hits 2-Week High on Stronger Soy
* Expectations of lower-than-forecast July output support palm
* Palm may rise towards 2,591 ringgit per tonne - Technicals
26/07/2017 (Reuters) - Malaysian palm oil futures surged 1.5 percent to two-week highs in early trade on Tuesday, supported by expectations of lower-than-forecast production in July, and tracking strong gains in soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.5 percent at 2,592 ringgit ($606.17) at the midday break, its highest since July 12.
Traded volumes stood at 20,834 lots of 25 tonnes each at noon.
"The palm market was up, riding the CBOT rally on reports of crop damage," said a Kuala Lumpur-based futures trader.
The October soybean oil contract on the CBOT surged 1.1 percent, in line with soybean prices which hit two-week highs after the U.S. Department of Agriculture said more of the crop had been damaged by recent dry weather than expected.
Palm oil prices track the movements in related edible oils, as they compete for a share in the global vegetable oils market.
The trader said the market had lowered its forecast for palm oil production in July, supporting prices in early trade on Tuesday.
Palm oil production in Malaysia, the second largest producer after Indonesia, is seen rising in the second half of the year, but gains could be curbed as trees still see some impacts from a crop-damaging El Nino in 2015.
Production in 2017 is estimated to reach between 18.7 million tonnes and 19.5 million tonnes, up around 10 percent from 2016 levels, but below the record high of 19.96 million tonnes hit in 2015.
In other related oils, September soybean oil on the Dalian Commodity Exchange rose 1.3 percent, while the September palm olein contract was up 1.7 percent.
Palm oil seems to have stabilised around a support at 2,541 ringgit, and may rise towards a resistance at 2,591 ringgit per tonne, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0623 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2617 +28.00 2603 2617 667
MY PALM OIL SEP7 2600 +35.00 2578 2602 3415
MY PALM OIL OCT7 2592 +39.00 2565 2594 9502
CHINA PALM OLEIN SEP7 5440 +88.00 5334 5456 207442
CHINA SOYOIL SEP7 6158 +76.00 6074 6170 246982
CBOT SOY OIL DEC7 34.37 +0.32 34.24 34.62 8077
INDIA PALM OIL JUL7 483.00 +3.50 480.00 483.7 444
INDIA SOYOIL AUG7 644 +5.20 641.05 644 14290
NYMEX CRUDE SEP7 46.65 +0.31 46.38 46.70 29831
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 = 4.2760 ringgit)
($1 = 64.3550 Indian rupees)
($1 = 6.7480 Chinese yuan)
* Palm may rise towards 2,591 ringgit per tonne - Technicals
26/07/2017 (Reuters) - Malaysian palm oil futures surged 1.5 percent to two-week highs in early trade on Tuesday, supported by expectations of lower-than-forecast production in July, and tracking strong gains in soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.5 percent at 2,592 ringgit ($606.17) at the midday break, its highest since July 12.
Traded volumes stood at 20,834 lots of 25 tonnes each at noon.
"The palm market was up, riding the CBOT rally on reports of crop damage," said a Kuala Lumpur-based futures trader.
The October soybean oil contract on the CBOT surged 1.1 percent, in line with soybean prices which hit two-week highs after the U.S. Department of Agriculture said more of the crop had been damaged by recent dry weather than expected.
Palm oil prices track the movements in related edible oils, as they compete for a share in the global vegetable oils market.
The trader said the market had lowered its forecast for palm oil production in July, supporting prices in early trade on Tuesday.
Palm oil production in Malaysia, the second largest producer after Indonesia, is seen rising in the second half of the year, but gains could be curbed as trees still see some impacts from a crop-damaging El Nino in 2015.
Production in 2017 is estimated to reach between 18.7 million tonnes and 19.5 million tonnes, up around 10 percent from 2016 levels, but below the record high of 19.96 million tonnes hit in 2015.
In other related oils, September soybean oil on the Dalian Commodity Exchange rose 1.3 percent, while the September palm olein contract was up 1.7 percent.
Palm oil seems to have stabilised around a support at 2,541 ringgit, and may rise towards a resistance at 2,591 ringgit per tonne, according to Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0623 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2617 +28.00 2603 2617 667
MY PALM OIL SEP7 2600 +35.00 2578 2602 3415
MY PALM OIL OCT7 2592 +39.00 2565 2594 9502
CHINA PALM OLEIN SEP7 5440 +88.00 5334 5456 207442
CHINA SOYOIL SEP7 6158 +76.00 6074 6170 246982
CBOT SOY OIL DEC7 34.37 +0.32 34.24 34.62 8077
INDIA PALM OIL JUL7 483.00 +3.50 480.00 483.7 444
INDIA SOYOIL AUG7 644 +5.20 641.05 644 14290
NYMEX CRUDE SEP7 46.65 +0.31 46.38 46.70 29831
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 = 4.2760 ringgit)
($1 = 64.3550 Indian rupees)
($1 = 6.7480 Chinese yuan)