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VEGOILS-Palm up on overnight soyoil strength, stronger exports
September 20, 2017 / 5:28 AM / 3 months ago

VEGOILS-Palm up on overnight soyoil strength, stronger exports

    * Palm in line for first rise in five sessions
    * Gains seen short-lived - trader

    By Emily Chow and Tavleen Tarrant
    KUALA LUMPUR, Sept 20 (Reuters) - Malaysian palm oil futures
were set for the first gain in five sessions in early trade on
Wednesday, supported by rising export demand and strength in
soyoil overnight on the Chicago Board of Trade (CBOT).
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.5
percent to 2,780 ringgit ($663.25) a tonne at the midday break.
    The rise followed four straight days of declines as palm
tracked weakness in related edible oils and was also pulled
lower by bearish price outlooks at an industry conference last
week.
    Traded volumes stood at 27,555 lots of 25 tonnes each at
noon.
    "The market is higher on better soyoil, closing (higher)
last night," said a futures trader from Kuala Lumpur, referring
to CBOT soyoil. 
    He added that strong export data from cargo surveyor
Intertek Testing Services (ITS) was also supporting the market,
but the gains would likely be short-lived as expectations of
stronger exports were already priced in.
    "The market needs to break above 2,800 ringgit to continue
its bullish rally. Otherwise it will come lower to 2,740-50
ringgit," said the trader. 
    Palm oil shipments from Malaysia, the world's second-largest
producer after Indonesia, rose 25.4 percent during Sept. 1-20
versus the corresponding period the previous month, according to
ITS data on Wednesday morning.
    Demand for the tropical oil is seen rising for the full
month of September, as key buyers China and India stock up ahead
of the Mid-Autumn festival and Diwali respectively, which lead
to higher usage of palm oil.
    Palm oil prices are also affected by movements in related
edible oils including soy, as they compete for a share of the
global vegetable oils market. 
    The October soybean oil contract on the Chicago Board
of Trade posted its first gain in a week on Tuesday, but was
last down 0.1 percent on Wednesday. 
    In other related oils, the January soybean oil contract on
the Dalian Commodity Exchange dipped 0.1 percent, while
the January palm olein contract fell 0.4 percent.
        
 Palm, soy and crude oil prices at 0505 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2795  +10.00    2784    2796     114
 MY PALM OIL       NOV7     2782  +10.00    2770    2790    3860
 MY PALM OIL       DEC7     2780  +13.00    2769    2787   11256
 CHINA PALM OLEIN  JAN8     5728  -24.00    5686    5754  348386
 CHINA SOYOIL      JAN8     6338   -4.00    6294    6350  250628
 CBOT SOY OIL      DEC7    34.73   -0.05   34.69   34.96    3643
 INDIA PALM OIL    SEP7   543.10   +1.60  541.70   543.3     171
 INDIA SOYOIL      SEP7      667   +0.55   666.5     667     300
 NYMEX CRUDE       OCT7    49.76   +0.28   49.76   49.89    1455
 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 = 4.1915 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.5660 Chinese yuan)
    

 (Reporting by Tavleen Tarrant, Writing by Emily Chow; Editing
by Richard Pullin)
  
 
 

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