April 20, 2018 / 5:16 AM / 3 months ago

VEGOILS-Palm edges up on stronger exports; range-trading seen

    * Palm up 0.2 percent on-week so far
    * Market seen falling in longer term - trader
    * Palm may retest resistance at 2,434 rgt/T - techs 

    By Emily Chow
    KUALA LUMPUR, April 20 (Reuters) - Malaysian palm oil
futures rose slightly in early trade on Friday, gaining strength
from stronger export data, but traders still expect the market
to trade range-bound. 
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange rose 0.04 percent to
2,404 ringgit ($617.99) a tonne at the midday break.
    The market is also up 0.2 percent for the week so far, in
line for a second week of gains in three.
    Trading volumes stood at 11,655 lots of 25 tonnes each at
the midday break.
    "The market is trying to hold above 2,400 ringgit on the
back of better exports," said a Kuala Lumpur-based trader,
referring to shipment data released by inspection company AmSpec
Agri Malaysia on Friday morning.
    Malaysia's palm oil shipments edged up 2 percent between
April 1-20 versus the corresponding period last month, AmSpec
reported. 
    "Moving forward though, the market should be going down as
production picks up on seasonal pattern, and on a softening of
exports due to the reintroduction of export duties," added the
trader.
    Malaysia extended a duty suspension implemented at the start
of 2018 until end-April in a move to encourage demand to reduce
inventory levels and support prices.
    The duties will resume in May at a 5 percent export tax
rate.
    Palm oil production in top growers Indonesia and Malaysia in
April is forecast to rise on-month in line with seasonal trend.
Malaysian March output had rose 17.2 percent month-on-month to
1.57 million tonnes, its highest March production since 2000,
according to data from the Malaysian Palm Oil Board.
MYPOMP-CPOTT
    In other related oils, the Chicago Board of Trade's July
soybean oil contract fell 0.1 percent, while September
soybean oil on China's Dalian Commodity Exchange was up
0.2 percent. 
    The Dalian September palm oil contract rose 0.1
percent. 
    Palm oil prices are affected by movements in rival edible
oils, as they compete for a share in the global vegetable oils
market.
    Palm oil may retest a resistance at 2,434 ringgit per tonne,
a break above which could lead to a gain to the next resistance
at 2,476 ringgit, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    
    Palm, soy and crude oil prices as of 0503 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY8     2399  +11.00    2385    2399     223
 MY PALM OIL       JUN8     2403   +1.00    2394    2410    1133
 MY PALM OIL       JUL8     2404   +1.00    2394    2410    5517
 CHINA PALM OLEIN  SEP8     5016   +4.00    5014    5040  202456
 CHINA SOYOIL      SEP8     5820  +12.00    5812    5846  285582
 CBOT SOY OIL      JUL8    31.66   -0.02   31.63   31.74    2112
 INDIA PALM OIL    APR8   645.60   +2.50  643.00   646.3     109
 INDIA SOYOIL      APR8   765.85   +1.10   765.5     766     260
 NYMEX CRUDE       MAY8    68.20   -0.09   68.10   68.46     815
  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 = 3.8900 ringgit)
($1 = 66.0225 Indian rupees)
($1 = 6.2855 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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