MARKET DEVELOPMENT
VEGOILS-Palm Rises on Weaker Ringgit, Overnight Soyoil Gains
VEGOILS-Palm Rises on Weaker Ringgit, Overnight Soyoil Gains
* Market may shed gains on bearish industry regulator data-Trader
* MPOB data released at midday break show stocks, output up in July
11/08/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Thursday, supported by a weaker ringgit and overnight gains in soyoil on the Chicago Board of Trade.
Traders however expect prices to decline in the afternoon trading session on bearish stocks and production data from the industry regulator data, which was released at the market's midday break.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent to 2,637 ringgit ($614.40) at the midday break.
Traded volumes stood at 14,363 lots of 25 tonnes each at noon.
"The market was up on overnight U.S. soyoil and the weaker ringgit," said a futures trader from Kuala Lumpur. The ringgit, palm's currency of trade, fell against the dollar to its weakest level in nearly a month on Thursday morning.
It was last down 0.1 percent to 4.2920 per dollar. A weaker ringgit makes palm oil cheaper for holders of foreign currencies.
The trader however said palm should see a decline in the afternoon session as data from the Malaysian Palm Oil Board showed stronger-than-forecast stockpiles and production levels.
Malaysia's palm oil stocks at end-July rose 16.8 percent to 1.78 million tonnes from the previous month, versus a Reuters poll which forecast a 6.5 percent rise in inventory levels.
Official data also showed July output rising 20.7 percent to 1.83 million tonnes, compared with a forecast for a 11 percent gain to 1.68 million tonnes.
In other related oils, the October soybean oil contract on the Chicago Board of Trade, which gained 0.9 percent on Wednesday, was last down 0.4 percent on Wednesday.
The January soybean oil on the Dalian Commodity Exchange fell 0.4 percent, while the January palm olein contract was also down 0.7 percent.
Palm, soy and crude oil prices at 0537 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2630 +2.00 2630 2640 40
MY PALM OIL SEP7 2631 +10.00 2627 2637 1422
MY PALM OIL OCT7 2637 +7.00 2634 2650 5691
CHINA PALM OLEIN JAN8 5372 -40.00 5340 5442 426654
CHINA SOYOIL JAN8 6260 -24.00 6230 6324 351146
CBOT SOY OIL DEC7 34.42 +0.12 34.39 34.65 4646
INDIA PALM OIL AUG7 482.80 -3.70 481.10 488 767
INDIA SOYOIL AUG7 637 -2.15 636 641.4 1930
NYMEX CRUDE SEP7 49.60 +0.04 49.49 49.69 23583
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 = 4.2920 ringgit)
($1 = 63.9775 Indian rupees)
($1 = 6.6710 Chinese yuan)
* MPOB data released at midday break show stocks, output up in July
11/08/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Thursday, supported by a weaker ringgit and overnight gains in soyoil on the Chicago Board of Trade.
Traders however expect prices to decline in the afternoon trading session on bearish stocks and production data from the industry regulator data, which was released at the market's midday break.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent to 2,637 ringgit ($614.40) at the midday break.
Traded volumes stood at 14,363 lots of 25 tonnes each at noon.
"The market was up on overnight U.S. soyoil and the weaker ringgit," said a futures trader from Kuala Lumpur. The ringgit, palm's currency of trade, fell against the dollar to its weakest level in nearly a month on Thursday morning.
It was last down 0.1 percent to 4.2920 per dollar. A weaker ringgit makes palm oil cheaper for holders of foreign currencies.
The trader however said palm should see a decline in the afternoon session as data from the Malaysian Palm Oil Board showed stronger-than-forecast stockpiles and production levels.
Malaysia's palm oil stocks at end-July rose 16.8 percent to 1.78 million tonnes from the previous month, versus a Reuters poll which forecast a 6.5 percent rise in inventory levels.
Official data also showed July output rising 20.7 percent to 1.83 million tonnes, compared with a forecast for a 11 percent gain to 1.68 million tonnes.
In other related oils, the October soybean oil contract on the Chicago Board of Trade, which gained 0.9 percent on Wednesday, was last down 0.4 percent on Wednesday.
The January soybean oil on the Dalian Commodity Exchange fell 0.4 percent, while the January palm olein contract was also down 0.7 percent.
Palm, soy and crude oil prices at 0537 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2630 +2.00 2630 2640 40
MY PALM OIL SEP7 2631 +10.00 2627 2637 1422
MY PALM OIL OCT7 2637 +7.00 2634 2650 5691
CHINA PALM OLEIN JAN8 5372 -40.00 5340 5442 426654
CHINA SOYOIL JAN8 6260 -24.00 6230 6324 351146
CBOT SOY OIL DEC7 34.42 +0.12 34.39 34.65 4646
INDIA PALM OIL AUG7 482.80 -3.70 481.10 488 767
INDIA SOYOIL AUG7 637 -2.15 636 641.4 1930
NYMEX CRUDE SEP7 49.60 +0.04 49.49 49.69 23583
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 = 4.2920 ringgit)
($1 = 63.9775 Indian rupees)
($1 = 6.6710 Chinese yuan)