MARKET DEVELOPMENT
VEGOILS-Palm Oil Down in Early Trade on Rising Output Forecasts
VEGOILS-Palm Oil Down in Early Trade on Rising Output Forecasts
* Market losses could be capped by limits in output gains - Trader
* Palm still targets a range of 2,579-2,590 rgt/T - Technicals
08/08/2017 (Reuters) - Malaysian palm oil futures dipped in early trade on Monday on expectations that official production data due later this week will show rising output in July.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.5 percent to 2,596 ringgit ($606.68) by the midday break.
Traded volumes stood at 14,474 lots of 25 tonnes each at noon.
"The market was down as it was expecting higher production data for July," said a futures trader from Kuala Lumpur.
"But now we are hearing production gains in August will taper off," he added.
Another trader said sentiment was dampened by some profit taking and position squaring in anticipation of higher production and stocks.
A Reuters poll of nine traders, planters and analysts forecast that Malaysian output in July will rise 11 percent to 1.68 million tonnes, leading to 6.5 percent rise in inventory levels to 1.63 million tonnes.
Official data from industry regulator the Malaysian Palm Oil Board (MPOB) is scheduled for release on Thursday.
Palm oil production shows seasonal gains in the second half of the year, but industry players still expect the lingering effects of a crop damaging El Nino to affect yield.
In related oils, the October soybean oil contract on the Chicago Board of Trade was down 0.3 percent, while the January soybean oil on the Dalian Commodity Exchange gained 0.5 percent.
The January palm olein contract edged up 0.2 percent.
Palm oil is still targeting a range of 2,579-2,590 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0440 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2595 +5.00 2593 2595 91
MY PALM OIL SEP7 2595 -6.00 2588 2614 1155
MY PALM OIL OCT7 2596 -12.00 2591 2620 8498
CHINA PALM OLEIN JAN8 5340 +8.00 5304 5396 422516
CHINA SOYOIL JAN8 6188 +28.00 6162 6226 294548
CBOT SOY OIL DEC7 33.94 -0.90 33.87 34.14 4708
INDIA PALM OIL AUG7 480.60 -0.90 480.40 481 9
INDIA SOYOIL AUG7 638.3 -0.30 637.6 638.3 70
NYMEX CRUDE SEP7 49.38 -0.20 49.37 49.73 26949
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 = 4.2790 ringgit)
* Palm still targets a range of 2,579-2,590 rgt/T - Technicals
08/08/2017 (Reuters) - Malaysian palm oil futures dipped in early trade on Monday on expectations that official production data due later this week will show rising output in July.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.5 percent to 2,596 ringgit ($606.68) by the midday break.
Traded volumes stood at 14,474 lots of 25 tonnes each at noon.
"The market was down as it was expecting higher production data for July," said a futures trader from Kuala Lumpur.
"But now we are hearing production gains in August will taper off," he added.
Another trader said sentiment was dampened by some profit taking and position squaring in anticipation of higher production and stocks.
A Reuters poll of nine traders, planters and analysts forecast that Malaysian output in July will rise 11 percent to 1.68 million tonnes, leading to 6.5 percent rise in inventory levels to 1.63 million tonnes.
Official data from industry regulator the Malaysian Palm Oil Board (MPOB) is scheduled for release on Thursday.
Palm oil production shows seasonal gains in the second half of the year, but industry players still expect the lingering effects of a crop damaging El Nino to affect yield.
In related oils, the October soybean oil contract on the Chicago Board of Trade was down 0.3 percent, while the January soybean oil on the Dalian Commodity Exchange gained 0.5 percent.
The January palm olein contract edged up 0.2 percent.
Palm oil is still targeting a range of 2,579-2,590 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0440 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2595 +5.00 2593 2595 91
MY PALM OIL SEP7 2595 -6.00 2588 2614 1155
MY PALM OIL OCT7 2596 -12.00 2591 2620 8498
CHINA PALM OLEIN JAN8 5340 +8.00 5304 5396 422516
CHINA SOYOIL JAN8 6188 +28.00 6162 6226 294548
CBOT SOY OIL DEC7 33.94 -0.90 33.87 34.14 4708
INDIA PALM OIL AUG7 480.60 -0.90 480.40 481 9
INDIA SOYOIL AUG7 638.3 -0.30 637.6 638.3 70
NYMEX CRUDE SEP7 49.38 -0.20 49.37 49.73 26949
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 = 4.2790 ringgit)