MARKET DEVELOPMENT
VEGOILS-Palm Reverses Losses, Gains Tracking Related Edible Oils
VEGOILS-Palm Reverses Losses, Gains Tracking Related Edible Oils
* Market gains at midday break strongest in a week
* Rising output and end-stocks expected, gains factored in- Trader
* Palm may slide more to 2,556 gt/T - Technicals
09/08/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Tuesday, reversing losses from the previous session, supported by strength in related edible oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent to 2,590 ringgit ($604.86) at the midday break, its strongest gain in a week so far.
Palm hit a two-week low in the previous session, touching an intraday low of 2,572 ringgit.
Traded volumes stood at 14,582 lots of 25 tonnes each at noon.
"Palm oil is tracking gains in U.S. and Dalian soyoil, and there is some short-covering on a previously oversold market," said a trader from Kuala Lumpur, referring to gains in soyoil on the Chicago Board of Trade and China's Dalian Commodities Exchange.
"Production is seen picking up and rising stocks are expected in the next few months... But the supply and demand scenario is already factored into the market."
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.
Exports are seen up 4 percent to 1.43 million tonnes.
Official data from the 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 uncertainty remains over the extent of palm's gains as trees are still seeing the lingering effects of a crop damaging El Nino.
The October soybean oil contract on the Chicago Board of Trade rose 0.5 percent, while the January soybean oil on the Dalian Commodity Exchange gained 0.4 percent.
In related oils, the January palm olein contract was down 0.3 percent.
Palm oil may slide more to 2,556 ringgit per tonne, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0510 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2601 +20.00 2599 2604 350
MY PALM OIL SEP7 2582 +8.00 2580 2596 2005
MY PALM OIL OCT7 2590 +16.00 2585 2597 6474
CHINA PALM OLEIN JAN8 5340 -14.00 5276 5366 422086
CHINA SOYOIL JAN8 6212 +24.00 6140 6234 292136
CBOT SOY OIL DEC7 34.09 +0.00 33.83 34.15 5190
INDIA PALM OIL AUG7 486.60 +3.30 484.70 487 114
INDIA SOYOIL AUG7 642 +1.95 641.6 642.3 1580
NYMEX CRUDE SEP7 49.22 -0.17 49.18 49.34 23022
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 = 4.2820 ringgit)
($1 = 63.7700 Indian rupees)
($1 = 6.6962 Chinese yuan)
* Rising output and end-stocks expected, gains factored in- Trader
* Palm may slide more to 2,556 gt/T - Technicals
09/08/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Tuesday, reversing losses from the previous session, supported by strength in related edible oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent to 2,590 ringgit ($604.86) at the midday break, its strongest gain in a week so far.
Palm hit a two-week low in the previous session, touching an intraday low of 2,572 ringgit.
Traded volumes stood at 14,582 lots of 25 tonnes each at noon.
"Palm oil is tracking gains in U.S. and Dalian soyoil, and there is some short-covering on a previously oversold market," said a trader from Kuala Lumpur, referring to gains in soyoil on the Chicago Board of Trade and China's Dalian Commodities Exchange.
"Production is seen picking up and rising stocks are expected in the next few months... But the supply and demand scenario is already factored into the market."
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.
Exports are seen up 4 percent to 1.43 million tonnes.
Official data from the 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 uncertainty remains over the extent of palm's gains as trees are still seeing the lingering effects of a crop damaging El Nino.
The October soybean oil contract on the Chicago Board of Trade rose 0.5 percent, while the January soybean oil on the Dalian Commodity Exchange gained 0.4 percent.
In related oils, the January palm olein contract was down 0.3 percent.
Palm oil may slide more to 2,556 ringgit per tonne, said Reuters market analyst for commodities and energy technicals Wang Tao.
Palm, soy and crude oil prices at 0510 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2601 +20.00 2599 2604 350
MY PALM OIL SEP7 2582 +8.00 2580 2596 2005
MY PALM OIL OCT7 2590 +16.00 2585 2597 6474
CHINA PALM OLEIN JAN8 5340 -14.00 5276 5366 422086
CHINA SOYOIL JAN8 6212 +24.00 6140 6234 292136
CBOT SOY OIL DEC7 34.09 +0.00 33.83 34.15 5190
INDIA PALM OIL AUG7 486.60 +3.30 484.70 487 114
INDIA SOYOIL AUG7 642 +1.95 641.6 642.3 1580
NYMEX CRUDE SEP7 49.22 -0.17 49.18 49.34 23022
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 = 4.2820 ringgit)
($1 = 63.7700 Indian rupees)
($1 = 6.6962 Chinese yuan)