February 21, 2018 / 6:23 AM / 2 years ago

VEGOILS-Palm drops on slow buying from India, unexpected production fall

    * Palm continues to fall to 2,479 rgt/T in early trade
    * Sentiment hit by slower India buying, lower production
    * Palm biased to fall into 2,449-2,466 rgt/T range -

    By Liz Lee
    KUALA LUMPUR, Feb 21 (Reuters) - Malaysian palm oil futures
fell to their lowest in almost two weeks in early trade on
Wednesday as subdued buying from India dampened market sentiment
and the latest production figures disappointed traders.
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was down 0.24 percent
at 2,479 ringgit ($634.02) a tonne at noon, potentially charting
a second day of falls.
    Trading volumes were robust, with 28,265 lots of 25 tonnes
each during the first half.
    "The Indian rupee has fallen a lot, so buying power from
India has reduced. Market is expecting India will not buy
aggressively for now," said a Kuala Lumpur-based trader.
    However, data from Southern Palm Oil Millers Association on
Wednesday showing a 22.6 percent fall in production for the Feb.
1-20 period, was likely to lend support. "There could be some
short-covering from traders who sold down on Tuesday," the
trader added.
    Another trader said the market adjusted to
lower-than-expected production data from SPPOMA.
    "Market had factored in higher production. Given the
production recovery in January and February year-on-year, we are
expecting higher production this year which will exert pressure
on inventory," the trader said.
    The market will take further cues from production data on
Thursday, the traders said.
    The Chicago Board of Trade's March soybean oil contract
 fell 0.35 percent, while China's Dalian Commodity
Exchange remains closed for the Lunar New Year celebrations and
will reopen on Thursday.
    Palm oil prices are impacted by other rival edible oils as
they compete for a share in the global vegetable oils market.
    Palm oil was biased to fall into a range of 2,449-2,466
ringgit per tonne, as suggested by a projection analysis and a
wedge, Reuters market analyst for commodities and energy
technicals, Wang Tao said.
    Palm, soy and crude oil prices as of 0550 GMT
 Contract                     Month      Last    Change         Low       High       Volume
 MY PALM OIL               MAR8          2501     -8.00        2499       2530          479
 MY PALM OIL               APR8          2485     -7.00        2484       2508         8158
 MY PALM OIL               MAY8          2479     -6.00        2475       2500        10993
 CHINA PALM OLEIN          MAY8             0     +0.00           0          0            0
 CHINA SOYOIL              MAY8             0     +0.00           0          0            0
 CBOT SOY OIL              MAY8         31.94     -0.11       31.93      32.12         3595
 INDIA PALM OIL            FEB8        579.00     -0.20      576.80      579.7           95
 INDIA SOYOIL              MAR8         744.6     -1.80       743.7        746         7110
 NYMEX CRUDE               APR8         61.14     -0.65       61.02      61.70        34063
  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 = 3.9090 ringgit)
($1 = 64.8500 Indian rupees)
($1 = 6.3439 Chinese yuan)    

 (Reporting by Liz Lee; Editing by Sunil Nair)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below