MARKET DEVELOPMENT
VEGOILS-Palm Near 4-month High on Stronger Soy, Lower Output Gains
VEGOILS-Palm Near 4-month High on Stronger Soy, Lower Output Gains
* Market hits high of 2,705 rgt/T in morning trade
* Production and end-stocks also seen lower than expected - Trader
* Palm may test resistance at 2,675 rgt/T range - Techs
01/08/2017 (Reuters) - Malaysian palm oil futures hit a near four-month high in early trade on Monday, tracking overnight gains in soyoil on the Chicago Board of Trade and on forecasts of lower-than-expected output of gains and end-stocks.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.2 percent to 2,686 ringgit ($627.94) at the midday break. It had earlier hit a near four-month high of 2,705 ringgit, its strongest level since April 6.
Traded volumes stood at 13,379 lots of 25 tonnes each at noon.
"The market is up today largely because of external markets and overseas weather," said a futures trader from Kuala Lumpur referring to gains in soyoil prices on Friday.
The trader said the market was bullish on news that a U.S.court said the U.S. Environmental Protection Agency (EPA) had erred when setting standards for how much renewable fuel must be included in fuel sold in the U.S. and ordered the agency to try again. The EPA had earlier sought to lower the amount of biofuels that needed to be mixed into U.S. fuel.
Dry weather concerns in the soy-growing areas of the U.S. also added strength to soy prices.
Palm oil prices are impacted by related edible oils such as soy, as they compete for a share in the global vegetable oils Board of Trade surged 2.2 percent on Friday, but was last down 0.4 percent on Monday.
Another palm oil trader added that Malaysian production and end-stocks for July "are to be lower than previously expected," which also contributed to palm's strength.
Rising demand could also support palm oil prices, as this reduces stockpiles in Malaysia, the world's second largest palm oil producer after Indonesia.
Cargo surveyor Intertek Testing Services reported gains in July shipments from Malaysia, up 4.1 percent from a month ago.
In other related oils, the September soybean oil on the Dalian Commodity Exchange was up 0.2 percent, while the September palm olein contract rose 1 percent.
Palm oil may test a resistance at 2,675 ringgit per tonne, probably after a shallow correction to a support at 2,638 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0525 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2686 +20.00 2685 2705 493
MY PALM OIL SEP7 2686 +30.00 2685 2700 762
MY PALM OIL OCT7 2686 +31.00 2682 2705 6501
CHINA PALM OLEIN JAN8 5470 +54.00 5386 5486 354114
CHINA SOYOIL JAN8 6306 +14.00 6234 6316 276258
CBOT SOY OIL DEC7 34.88 -0.12 34.66 35.17 8359
INDIA PALM OIL JUL7 488.30 +0.40 487.80 489.5 32
INDIA SOYOIL AUG7 649.6 +3.45 647.55 649.9 5440
NYMEX CRUDE SEP7 49.89 +0.18 49.70 50.06 39177
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 = 4.2775 ringgit)
($1 = 64.0850 Indian rupees)
($1 = 6.7260 Chinese yuan)
* Production and end-stocks also seen lower than expected - Trader
* Palm may test resistance at 2,675 rgt/T range - Techs
01/08/2017 (Reuters) - Malaysian palm oil futures hit a near four-month high in early trade on Monday, tracking overnight gains in soyoil on the Chicago Board of Trade and on forecasts of lower-than-expected output of gains and end-stocks.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.2 percent to 2,686 ringgit ($627.94) at the midday break. It had earlier hit a near four-month high of 2,705 ringgit, its strongest level since April 6.
Traded volumes stood at 13,379 lots of 25 tonnes each at noon.
"The market is up today largely because of external markets and overseas weather," said a futures trader from Kuala Lumpur referring to gains in soyoil prices on Friday.
The trader said the market was bullish on news that a U.S.court said the U.S. Environmental Protection Agency (EPA) had erred when setting standards for how much renewable fuel must be included in fuel sold in the U.S. and ordered the agency to try again. The EPA had earlier sought to lower the amount of biofuels that needed to be mixed into U.S. fuel.
Dry weather concerns in the soy-growing areas of the U.S. also added strength to soy prices.
Palm oil prices are impacted by related edible oils such as soy, as they compete for a share in the global vegetable oils Board of Trade surged 2.2 percent on Friday, but was last down 0.4 percent on Monday.
Another palm oil trader added that Malaysian production and end-stocks for July "are to be lower than previously expected," which also contributed to palm's strength.
Rising demand could also support palm oil prices, as this reduces stockpiles in Malaysia, the world's second largest palm oil producer after Indonesia.
Cargo surveyor Intertek Testing Services reported gains in July shipments from Malaysia, up 4.1 percent from a month ago.
In other related oils, the September soybean oil on the Dalian Commodity Exchange was up 0.2 percent, while the September palm olein contract rose 1 percent.
Palm oil may test a resistance at 2,675 ringgit per tonne, probably after a shallow correction to a support at 2,638 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0525 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2686 +20.00 2685 2705 493
MY PALM OIL SEP7 2686 +30.00 2685 2700 762
MY PALM OIL OCT7 2686 +31.00 2682 2705 6501
CHINA PALM OLEIN JAN8 5470 +54.00 5386 5486 354114
CHINA SOYOIL JAN8 6306 +14.00 6234 6316 276258
CBOT SOY OIL DEC7 34.88 -0.12 34.66 35.17 8359
INDIA PALM OIL JUL7 488.30 +0.40 487.80 489.5 32
INDIA SOYOIL AUG7 649.6 +3.45 647.55 649.9 5440
NYMEX CRUDE SEP7 49.89 +0.18 49.70 50.06 39177
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 = 4.2775 ringgit)
($1 = 64.0850 Indian rupees)
($1 = 6.7260 Chinese yuan)