MARKET DEVELOPMENT
VEGOILS-Palm Hits One-week Low on Concerns Over Rising Output
VEGOILS-Palm Hits One-week Low on Concerns Over Rising Output
* Production gains could be lower than forecast - Trader
* Palm hits a low of 2,617 ringgit in early trade
* Palm may retrace more to 2,623 rgt/T - Technicals
03/08/2017 (Reuters) - Malaysian palm oil futures saw a sharp decline on Wednesday, hitting their lowest in a week, weighed down by expectations of rising production and tracking weaker performances in related edible oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange dropped 1.2 percent to 2,621 ringgit ($611.60) at the midday break. Earlier in the session, it touched 2,617 ringgit, its weakest since July 26.
Traded volumes stood at 21,656 lots of 25 tonnes each at noon.
"The palm market is down tracking weaker soyoil and RBD (refined bleached deodorized) palm olein," said a futures trader from Kuala Lumpur, referring to soyoil on both the Chicago Board of Trade and China's Dalian Commodity Exchange, and Dalian palm olein.
Traders say forecasts of rising output contributed to market concerns, ahead of the official July data to be released next week by Malaysian Palm Oil Board.
"I don't think production will go up a lot," said a futures trader, as palm trees are still facing the lingering effects of the 2015 crop-damaging El Nino.
Production in Malaysia, the second-largest producer of the tropical oil, is seen to rebound in July in line with seasonal trend and on a post-El Nino recovery.
In other related oils, the October soybean oil contract on the Chicago Board of Trade climbed up to 0.4 percent.
In the previous session, it saw a 2.4 percent decline after the U.S. Department of Agriculture rated 59 percent of the U.S. soy crop in good-to-excellent condition.
The September soybean oil on the Dalian Commodity Exchange was up as much as 1.2 percent, while the September palm olein contract fell up to 1.4 percent.
Palm oil prices are impacted by related edible oils, as they compete for a share in the global vegetable oils market.
Palm oil may retrace more to 2,623 ringgit per tonne, as it failed to break a strong resistance at 2,703 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0515 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2615 -44.00 2611 2637 20
MY PALM OIL SEP7 2616 -34.00 2609 2631 2141
MY PALM OIL OCT7 2621 -33.00 2617 2639 10150
CHINA PALM OLEIN JAN8 5392 -76.00 5364 5432 385238
CHINA SOYOIL JAN8 6258 -76.00 6242 6314 345776
CBOT SOY OIL DEC7 34.4 +0.10 34.24 34.45 5518
INDIA PALM OIL AUG7 488.20 -1.50 487.40 489 126
INDIA SOYOIL AUG7 645.8 -2.00 645.5 647.8 3610
NYMEX CRUDE SEP7 48.72 -0.44 48.64 48.92 32855
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 = 4.2855 ringgit)
($1 = 64.1050 Indian rupees)
($1 = 6.7255 Chinese yuan)
* Palm hits a low of 2,617 ringgit in early trade
* Palm may retrace more to 2,623 rgt/T - Technicals
03/08/2017 (Reuters) - Malaysian palm oil futures saw a sharp decline on Wednesday, hitting their lowest in a week, weighed down by expectations of rising production and tracking weaker performances in related edible oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange dropped 1.2 percent to 2,621 ringgit ($611.60) at the midday break. Earlier in the session, it touched 2,617 ringgit, its weakest since July 26.
Traded volumes stood at 21,656 lots of 25 tonnes each at noon.
"The palm market is down tracking weaker soyoil and RBD (refined bleached deodorized) palm olein," said a futures trader from Kuala Lumpur, referring to soyoil on both the Chicago Board of Trade and China's Dalian Commodity Exchange, and Dalian palm olein.
Traders say forecasts of rising output contributed to market concerns, ahead of the official July data to be released next week by Malaysian Palm Oil Board.
"I don't think production will go up a lot," said a futures trader, as palm trees are still facing the lingering effects of the 2015 crop-damaging El Nino.
Production in Malaysia, the second-largest producer of the tropical oil, is seen to rebound in July in line with seasonal trend and on a post-El Nino recovery.
In other related oils, the October soybean oil contract on the Chicago Board of Trade climbed up to 0.4 percent.
In the previous session, it saw a 2.4 percent decline after the U.S. Department of Agriculture rated 59 percent of the U.S. soy crop in good-to-excellent condition.
The September soybean oil on the Dalian Commodity Exchange was up as much as 1.2 percent, while the September palm olein contract fell up to 1.4 percent.
Palm oil prices are impacted by related edible oils, as they compete for a share in the global vegetable oils market.
Palm oil may retrace more to 2,623 ringgit per tonne, as it failed to break a strong resistance at 2,703 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0515 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2615 -44.00 2611 2637 20
MY PALM OIL SEP7 2616 -34.00 2609 2631 2141
MY PALM OIL OCT7 2621 -33.00 2617 2639 10150
CHINA PALM OLEIN JAN8 5392 -76.00 5364 5432 385238
CHINA SOYOIL JAN8 6258 -76.00 6242 6314 345776
CBOT SOY OIL DEC7 34.4 +0.10 34.24 34.45 5518
INDIA PALM OIL AUG7 488.20 -1.50 487.40 489 126
INDIA SOYOIL AUG7 645.8 -2.00 645.5 647.8 3610
NYMEX CRUDE SEP7 48.72 -0.44 48.64 48.92 32855
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 = 4.2855 ringgit)
($1 = 64.1050 Indian rupees)
($1 = 6.7255 Chinese yuan)