Reuters logo
VEGOILS-Palm slips from 5-month high on U.S. decision over biodiesel duties
August 23, 2017 / 5:05 AM / 3 months ago

VEGOILS-Palm slips from 5-month high on U.S. decision over biodiesel duties

    * Palm in line to snap four consecutive sessions of gains
    * Market also down on correction - Trader
    * Palm may stabilize in 2,721-2,730 ringgit/tonne -
Technicals

    By Emily Chow
    KUALA LUMPUR, Aug 23 (Reuters) - Malaysian palm oil futures
were poised to snap their winning streak on Wednesday, slipping
from a five-month high hit in the previous session, as markets
reacted to the U.S. decision to impose duties on biodiesel
imports from Indonesia and Argentina. 
    The U.S. Commerce Department on Tuesday made a preliminary
finding that imports of biodiesel from Indonesia and Argentina
were subsidized, a U.S. industry lobby group had said. 
    
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange fell 0.7
percent at 2,717 ringgit ($634.66) at the midday break. 
    Traded volumes stood at 35,584 lots of 25 tonnes each at
noon.
    "The market has been overbought... the fact that the rally
failed to boost the market higher suggests that buyers are
exhausted," said a futures trader from Kuala Lumpur. 
    "News that the United States will impose countervailing
duties on biodiesel imported from Indonesia and Argentina is
negative for palm," said the trader, as palm oil is often used
as feedstock in producing biodiesel.
    Palm oil may stabilize in a support zone of 2,721-2,730
ringgit per tonne, and then resume its uptrend, said Wang Tao, a
Reuters market analyst for commodities and energy technicals.

    In related vegetable oils, the October soybean oil contract
 on the Chicago Board of Trade rose as much as 2.8
percent, while the January soybean oil on the Dalian Commodity
Exchange gained up to 1.5 percent.
    The January palm olein contract on Dalian climbed
as much as 0.5 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 0437 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       SEP7     2707  -22.00    2707   2722      233
 MY PALM OIL       OCT7     2708  -21.00    2706   2734     1264
 MY PALM OIL       NOV7     2717  -20.00    2715   2744    17054
 CHINA PALM OLEIN  JAN8     5534  +26.00    5516   5594   584798
 CHINA SOYOIL      JAN8     6412  +74.00    6332   6434   459844
 CBOT SOY OIL      DEC7    35.03   +0.61      35  35.37    29427
 INDIA PALM OIL    AUG7   515.20   -0.10  515.20  517.5      120
 INDIA SOYOIL      SEP7        0   +0.00       0      0        0
 NYMEX CRUDE       OCT7    47.73   -0.10   47.61  47.76    16845
 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 = 4.2810 ringgit)
($1 = 64.0900 Indian rupees)
($1 = 6.6601 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 

Our Standards:The Thomson Reuters Trust Principles.
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