MARKET DEVELOPMENT
VEGOILS-Palm Falls From Two-Month Top on Rising Production Outlook
VEGOILS-Palm Falls From Two-Month Top on Rising Production Outlook
* Palm's decline at midday sharpest in a week
* Overnight losses in rival soyoil also weigh - Trader
27/07/2017 (Reuters) - Malaysian palm oil futures fell nearly 1 percent at the midday break on Wednesday, reversing gains from a two-month top reached in the previous session, hurt by expectations of higher production in July.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.95 percent to 2,601 ringgit ($607.28) at the midday break, its sharpest drop so far this week.
Traded volumes stood at 12,526 lots of 25 tonnes each at noon.
"The market declined on the rising production outlook," said a futures trader from Kuala Lumpur, referring to industry expectations of a monthly gain in Malaysia's July output following a decline in June.
Another trader added that palm's decline was aided by overnight losses in soyoil on the Chicago Board of Trade (CBOT). Palm tracks the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm saw its strongest daily gains in nearly four months in the previous session. Declining prices would widen its spread with rival oilseed soy and make it more competitive.
Demand for the tropical oil is seen rising on a widening price differential with soyoil, prompting buyers to switch to palm and as key purchasing market China replenishes its palm oil port stocks.
Chinese traders yesterday bought three more palm oil cargoes for shipment in October or November, around 35,000 tonnes in total, according to a report by China National Grain and Oils Information Center (CNGOIC).
The report added that traders had booked about 25 cargoes of palm oil for the fourth quarter of the year.
In other related edible oils, the October soybean oil contract on the CBOT was slightly up 0.03 percent, while September soybean oil on the Dalian Commodity Exchange was down 0.4 percent.
The September palm olein contract rose 0.8 percent.
Palm, soy and crude oil prices at 0516 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2625 -21.00 2625 2639 84
MY PALM OIL SEP7 2612 -24.00 2612 2631 1474
MY PALM OIL OCT7 2601 -25.00 2601 2620 7953
CHINA PALM OLEIN JAN8 5370 +44.00 5354 5410 411768
CHINA SOYOIL SEP7 6104 -26.00 6098 6198 246732
CBOT SOY OIL DEC7 33.98 +0.02 33.88 34.12 4386
INDIA PALM OIL JUL7 484.10 -1.00 483.90 484.7 34
INDIA SOYOIL AUG7 641.2 -1.20 640.55 641.7 2240
NYMEX CRUDE SEP7 48.38 +0.49 48.28 48.54 33129
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 = 4.2830 ringgit)
($1 = 64.4175 Indian rupees)
($1 = 6.7543 Chinese yuan)
* Overnight losses in rival soyoil also weigh - Trader
27/07/2017 (Reuters) - Malaysian palm oil futures fell nearly 1 percent at the midday break on Wednesday, reversing gains from a two-month top reached in the previous session, hurt by expectations of higher production in July.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.95 percent to 2,601 ringgit ($607.28) at the midday break, its sharpest drop so far this week.
Traded volumes stood at 12,526 lots of 25 tonnes each at noon.
"The market declined on the rising production outlook," said a futures trader from Kuala Lumpur, referring to industry expectations of a monthly gain in Malaysia's July output following a decline in June.
Another trader added that palm's decline was aided by overnight losses in soyoil on the Chicago Board of Trade (CBOT). Palm tracks the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm saw its strongest daily gains in nearly four months in the previous session. Declining prices would widen its spread with rival oilseed soy and make it more competitive.
Demand for the tropical oil is seen rising on a widening price differential with soyoil, prompting buyers to switch to palm and as key purchasing market China replenishes its palm oil port stocks.
Chinese traders yesterday bought three more palm oil cargoes for shipment in October or November, around 35,000 tonnes in total, according to a report by China National Grain and Oils Information Center (CNGOIC).
The report added that traders had booked about 25 cargoes of palm oil for the fourth quarter of the year.
In other related edible oils, the October soybean oil contract on the CBOT was slightly up 0.03 percent, while September soybean oil on the Dalian Commodity Exchange was down 0.4 percent.
The September palm olein contract rose 0.8 percent.
Palm, soy and crude oil prices at 0516 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2625 -21.00 2625 2639 84
MY PALM OIL SEP7 2612 -24.00 2612 2631 1474
MY PALM OIL OCT7 2601 -25.00 2601 2620 7953
CHINA PALM OLEIN JAN8 5370 +44.00 5354 5410 411768
CHINA SOYOIL SEP7 6104 -26.00 6098 6198 246732
CBOT SOY OIL DEC7 33.98 +0.02 33.88 34.12 4386
INDIA PALM OIL JUL7 484.10 -1.00 483.90 484.7 34
INDIA SOYOIL AUG7 641.2 -1.20 640.55 641.7 2240
NYMEX CRUDE SEP7 48.38 +0.49 48.28 48.54 33129
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 = 4.2830 ringgit)
($1 = 64.4175 Indian rupees)
($1 = 6.7543 Chinese yuan)