MARKET DEVELOPMENT
VEGOILS-Palm Oil Slips on Hopes of Higher Output, Stronger Ringgit
VEGOILS-Palm Oil Slips on Hopes of Higher Output, Stronger Ringgit
* Palm hits intraday high of 2,766 rgt/tonne
* Ringgit hits more than two-month high
* Traders uncertain about extent of production gain
29/08/2017 (Reuters) - Malaysian palm oil futures fell slightly on Monday, weighed down by expectations that production in August would rise slightly, and a stronger ringgit.
The ringgit was up 0.2 percent around noon at 4.2650 per dollar, after earlier hitting its strongest level in more than two months.
Gains in the ringgit, the currency of trade for palm oil, typically pressure palm prices by making it more expensive for buyers holding foreign currencies.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,744 ringgit ($643.38) at noon. Earlier in the session, it went as high as 2,766 ringgit.
Traded volumes stood at 10,011 lots of 25 tonnes each at noon.
The market likely declined on expectations of production growth, said a futures trader in Kuala Lumpur, adding this would contribute to the country's growing stockpiles.
However, traders are uncertain about the extent of gains in production.
Another trader said palm prices saw some resistance "in view of the ringgit appreciation."
Palm oil production in July rose 20.7 percent from a month earlier to 1.83 million tonnes, surpassing industry expectations, according to industry regulator data.
MYPOMP-CPOTT
The production data for August by the Malaysian Palm Oil Board is scheduled for release on Sept. 11.
In related vegetable oils, 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 fell 0.2 percent.
The January palm olein contract on Dalian declined 0.4 percent.
Palm oil prices are impacted by the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0547 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP7 2724 -9.00 2721 2746 123
MY PALM OIL OCT7 2736 -3.00 2736 2753 532
MY PALM OIL NOV7 2744 -6.00 2744 2766 6266
CHINA PALM OLEIN JAN8 5552 -24.00 5520 5582 382686
CHINA SOYOIL JAN8 6382 -12.00 6342 6418 298746
CBOT SOY OIL DEC7 35.15 +0.18 34.84 35.25 4305
INDIA PALM OIL AUG7 520.60 -0.10 519.50 522 107
INDIA SOYOIL SEP7 662.5 -1.40 662.15 663.6 3400
NYMEX CRUDE OCT7 47.69 -0.18 47.61 48.20 79419
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 = 4.2650 ringgit)
($1 = 63.9000 Indian rupees)
($1 = 6.6406 Chinese yuan)
* Ringgit hits more than two-month high
* Traders uncertain about extent of production gain
29/08/2017 (Reuters) - Malaysian palm oil futures fell slightly on Monday, weighed down by expectations that production in August would rise slightly, and a stronger ringgit.
The ringgit was up 0.2 percent around noon at 4.2650 per dollar, after earlier hitting its strongest level in more than two months.
Gains in the ringgit, the currency of trade for palm oil, typically pressure palm prices by making it more expensive for buyers holding foreign currencies.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,744 ringgit ($643.38) at noon. Earlier in the session, it went as high as 2,766 ringgit.
Traded volumes stood at 10,011 lots of 25 tonnes each at noon.
The market likely declined on expectations of production growth, said a futures trader in Kuala Lumpur, adding this would contribute to the country's growing stockpiles.
However, traders are uncertain about the extent of gains in production.
Another trader said palm prices saw some resistance "in view of the ringgit appreciation."
Palm oil production in July rose 20.7 percent from a month earlier to 1.83 million tonnes, surpassing industry expectations, according to industry regulator data.
MYPOMP-CPOTT
The production data for August by the Malaysian Palm Oil Board is scheduled for release on Sept. 11.
In related vegetable oils, 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 fell 0.2 percent.
The January palm olein contract on Dalian declined 0.4 percent.
Palm oil prices are impacted by the movements in related edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0547 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP7 2724 -9.00 2721 2746 123
MY PALM OIL OCT7 2736 -3.00 2736 2753 532
MY PALM OIL NOV7 2744 -6.00 2744 2766 6266
CHINA PALM OLEIN JAN8 5552 -24.00 5520 5582 382686
CHINA SOYOIL JAN8 6382 -12.00 6342 6418 298746
CBOT SOY OIL DEC7 35.15 +0.18 34.84 35.25 4305
INDIA PALM OIL AUG7 520.60 -0.10 519.50 522 107
INDIA SOYOIL SEP7 662.5 -1.40 662.15 663.6 3400
NYMEX CRUDE OCT7 47.69 -0.18 47.61 48.20 79419
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 = 4.2650 ringgit)
($1 = 63.9000 Indian rupees)
($1 = 6.6406 Chinese yuan)