Emily Chow

VEGOILS-Palm falls on weaker overnight U.S. soyoil, crude oil prices

16 Jan 2019

* Palm contract for April delivery down 0.4 percent * Palm oil may fall into 2,103-2,121 rgt/T - techs (Updates with closing prices) By Emily Chow KUALA LUMPUR, Jan 16 Malaysian palm oil futures edged down on Wednesday, though remained range-bound, tracking weakness in soyoil overnight on the U.S. Chicago Board of Trade (CBOT) and crude oil prices. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was down 0.4 percent at 2,175 ringgit ($529.45) a tonne at the close of trade. Trading volumes stood at 31,538 lots of 25 tonnes each at the end of the trading day. "Palm is down tracking overnight losses in the CBOT and lower crude oil," said a Kuala Lumpur-based trader. U.S. soybean futures fell for the third time in four sessions on Tuesday on worries the United States and China remain far apart in resolving a bitter trade dispute that has slashed U.S. soy imports by the world's top buyer. The Chicago March soybean oil contract was last up 0.3 percent. Palm oil prices are impacted by price movements of soyoil, as they compete for a share in the global vegetable oil market. The edible oil is also affected by crude oil prices, as it is used as feedstock to make biodiesel. U.S. oil prices inched lower on Wednesday after gains of more 3 percent in the previous session, pressured by concerns over the outlook for the global economy. In other related oils, the May soybean oil contract on the Dalian Commodity Exchange fell 0.1 percent, while the Dalian January palm oil contract declined 0.5 percent. Palm oil may fall into a range of 2,103-2,121 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals. Palm, soy and crude oil prices at 1051 GMT: Contract Month Last Change Low High Volume MY PALM OIL FEB9 2092 -7.00 2085 2096 392 MY PALM OIL MAR9 2137 -10.00 2132 2147 6286 MY PALM OIL APR9 2174 -9.00 2172 2185 12139 CHINA PALM OLEIN JAN9 4200 -22.00 3992 4200 556 CHINA SOYOIL JAN9 5170 +12.00 5168 5170 120 CBOT SOY OIL JAN9 28.33 +0.09 28.27 28.36 3784 INDIA PALM OIL JAN9 543.10 -0.90 541.90 545.2 297 INDIA SOYOIL JAN9 762 -4.00 762 765.5 2650 NYMEX CRUDE FEB9 51.88 -0.23 51.71 52.52 132825 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 = 4.1080 ringgit) ($1 = 71.1730 Indian rupees) ($1 = 6.7589 Chinese yuan) (Reporting by Emily Chow; Editing by Rashmi Aich and Mark Potter)

PREVIEW-Malaysia Dec palm stocks expected at 19-yr high of 3.1 mln T

04 Jan 2019

* Dec stocks to rise 4.3 pct from Nov to 3.14 mln T -survey * Output to fall to 1.78 mln T, down 3.6 pct -survey * Exports estimated up 4.7 pct at 1.44 mln T -survey * Malaysian Palm Oil Board data due Jan. 10 By Emily Chow KUALA LUMPUR, Jan 4 Malaysia's palm oil stocks are expected to have hit a 19-year high for end-December, surpassing the 3 million-tonne mark as production levels exceed exports, according to a Reuters survey. Stockpiles are expected up 4.3 percent from the previous month to 3.14 million tonnes, based on the median estimate of seven planters, traders and analysts. This would mark a seventh straight month of increase and Malaysia's highest stockpile levels since January 2000, according to Refinitiv Eikon data. Inventory gains could weigh on benchmark palm oil prices , which have recovered from three-year lows touched in November below 2,000 ringgit a tonne. Palm edged up 0.1 percent on Friday at 2,152 ringgit ($519.93) a tonne. "We think the market will still be carrying high stocks all the way until end-March," said a Singapore-based trader. "If we can't draw down stocks by end-March, after going through the low production cycle, it would be extremely difficult to draw stocks thereafter as production recovers," he said, adding that he has observed a pickup in exports to key markets China and India. The survey showed Malaysia's December exports are expected to have risen 4.7 percent from the previous month to 1.44 million tonnes, which would be the first gain after two months of decline. Demand for palm oil, the world's most commonly used edible oil, could further rise in the coming months following India's move to cut palm oil import taxes. India, the world's largest importer of edible oils, earlier this week said it would lower the duty on crude palm oil imports to 40 percent from 44 percent, while a tax on refined oils was cut to 50 percent from 54 percent. Additionally, Malaysian shipments of refined palm oil will be taxed at the lower rate of 45 percent, compared with the earlier 54 percent. The poll showed as well that December production is likely to have declined 3.6 percent to 1.78 million tonnes, which would be its second straight month to fall. Palm oil production usually tapers off at year-end before seasonally rising towards the end of the first quarter. Official palm oil data will be published by the Malaysian Palm Oil Board ‪after 0430 GMT on Jan. 10. The median results from the Reuters survey put Malaysia's consumption in December at 279,252 tonnes. Breakdown of December estimates (in tonnes): Range Median Production 1,720,000 - 2,000,000 1,779,000 Exports 1,356,559 - 1,500,000 1,440,000 Imports 50,000 - 110,000 70,000 Closing Stocks 3,067,128 - 3,309,842 3,136,736 * Official stocks of 3,006,988 tonnes in November plus the above estimated output and imports give a total December supply of 4,855,988 tonnes. Based on the median of exports and closing stocks estimate, Malaysia's domestic consumption in December is estimated to be 279,252 tonnes. ($1 = 4.1390 ringgit) (Reporting by Emily Chow; Editing by Tom Hogue)

GRAINS-Soybeans trade near two-week top on Brazil weather concerns

03 Jan 2019

(Updates with latest prices) By Emily Chow KUALA LUMPUR, Jan 3 U.S. soybean futures firmed on Thursday, trading near two-week highs on the prospect of declining yields in top producer Brazil due to scarce rains. The most-active soybean contract on the Chicago Board Of Trade was up slightly at $9.07-1/4 a bushel by 0357 GMT, after gaining over 1 percent in the previous session. Farmers expect soybean yields and output in Mato Grosso, Brazil's largest producing state, to be hit by scarce rains in December. Dry weather and high temperatures are also accelerating the soybean cycle, leading some growers to anticipate harvesting even at the risk of lowering yields. Wheat futures rose 0.2 percent at $5.07-3/4 a bushel in line for a second session of gains on short-covering and concerns about excessive rains in Argentina. Russian wheat exports rose sharply to 1.2 million tonnes in the last week of December, but trade is expected to be thin during the Dec. 30-Jan. 8 New Year holiday, said an agricultural consultancy. Meanwhile, corn slipped 0.1 percent to $3.75-1/2 a bushel after edging up 0.2 percent yesterday. Traders are also optimistic about easing trade tensions between China and the United States, and the prospect that China could buy more U.S. soybeans as a trade delegation heads to Beijing for talks on Jan. 7. The U.S. Department of Agriculture will decide on Friday whether to delay a slew of key crop reports scheduled for release on Jan. 11. A partial government shutdown has prompted the USDA to suspend daily and weekly export sales reports, worrying grain traders who rely on the data. Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 507.75 1.00 +0.20% -0.73% 517.30 41 CBOT corn 375.50 -0.25 -0.07% +0.00% 378.13 48 CBOT soy 907.25 0.25 +0.03% +1.31% 906.72 56 CBOT rice 10.36 $0.01 +0.10% +0.48% $10.70 21 WTI crude 45.69 -$0.85 -1.83% +0.79% $49.88 Currencies Euro/dlr $1.137 -$0.007 -0.62% -0.56% USD/AUD 0.6929 -0.011 -1.59% -1.48% (Reporting by Emily Chow; editing by Richard Pullin and Sunil Nair)

Palm oil jumps over 2 percent to as India cuts import tax

02 Jan 2019

KUALA LUMPUR Malaysian palm oil futures rose to their highest in nearly two weeks on the first trading day of 2019, after world's largest edible oil importer India announced import tax cuts, amid expectations of a fall in production.

Palm gains slightly but headed for another yearly decline

31 Dec 2018

KUALA LUMPUR Malaysian palm oil futures saw slight gains by Monday noon on firm crude oil and U.S. soyoil prices, but were on track to chart a second consecutive year of declines as high stocks and weak demand weighed on prices.

GRAINS-U.S. soy rises on U.S.-China trade hopes but set for second annual drop

31 Dec 2018

* Soy in line for second annual decline * Corn rises 7.4 pct so far in 2018 * Wheat set for strongest annual gain since 2010 (Updates with latest prices) By Emily Chow KUALA LUMPUR, Dec 31 U.S. soybean futures climbed to their highest in more than a week on Monday, buoyed by hints of improved trade relations between Washington and Beijing that could boost China's soybean purchases. The most-active soybean contract on the Chicago Board Of Trade rose 0.5 percent to $9.00-1/4 a bushel by 0336 GMT. For the year however, soybeans are set to drop 6.5 percent for a second year of declines. Meanwhile, wheat and corn futures both edged up but were trading within recent ranges. Corn gained 0.3 percent to $3.76-1/2 a bushel, and is set to gain 7.4 percent for the year. Wheat increased 0.2 percent to $5.12-1/2 a bushel. The grain is set to rise 20 percent in 2018, its strongest annual gain since 2010. Prices on Monday were supported by a telephone call on trade between China's President Xi Jinping and U.S. President Donald Trump. The world's two biggest economies have already made plans for face-to-face trade consultations in January to resolve a months-long trade war. China has also opened the door to rice imports from the U.S. for the first time ever in what analysts took to signal a warming of relations between the two countries. It was not immediately clear how much rice China might seek to buy from the U.S. The U.S. and China have clashed over trade this year, with the countries placing tariffs on each other's trade goods. Earlier this month, however, China made its first major purchase of U.S. soybeans since Trump and Xi struck a truce, providing some relief to U.S. farmers who have struggled to find buyers for their record-large harvest. This was followed by another round of U.S. soybean purchases, as private exporters sold 1.199 million tonnes of U.S. soybeans for shipment to China. The weekly export sales report from the U.S. Department of Agriculture has been postponed indefinitly because of a partial government shutdown. Grains prices at 0336 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 512.50 1.00 +0.20% +0.39% 517.83 43 CBOT corn 376.50 1.00 +0.27% +0.53% 378.20 51 CBOT soy 900.25 4.75 +0.53% +2.01% 906.83 48 CBOT rice 10.42 $0.11 +1.07% +1.86% $10.73 15 WTI crude 45.75 $0.42 +0.93% +2.56% $50.25 Currencies Euro/dlr $1.144 $0.000 +0.01% +0.07% USD/AUD 0.7062 0.002 +0.30% +0.41% (Reporting by Emily Chow; editing by Richard Pullin and Christian Schmollinger)

GRAINS-U.S. soybean edges up amid lack of market news

28 Dec 2018

* Corn, wheat holding steady * Traders uncertain as USDA weekly export sales report postponed (Updates prices) By Emily Chow KUALA LUMPUR, Dec 28 U.S. soybeans, wheat and corn futures held steady on Friday, though hovering around one-month lows amid a lack of demand and supply news. News on demand and supply and export sales, initially scheduled for release on Friday, were not reported by the U.S. Department of Agriculture due to the U.S. federal government partial shutdown. The most-active soybean contract on the Chicago Board Of Trade edged up 0.3 percent to $8.85 a bushel by 0429 GMT. Corn gained 0.3 percent to $3.75-1/2 a bushel after its previous sessions gains of 0.3 percent, while wheat was slightly up 0.2 percent at $5.11-1/2 a bushel. Traders were grappling with uncertainty as the U.S. government shutdown stretched on and on a lack of fresh news about supplies and demand. The U.S. Department of Agriculture's weekly export sales report, which had been scheduled for release on Friday, has been postponed indefinitely. Market analysts and traders had estimated that U.S. export sales for the week ended Dec. 20 were 1.05 million to 1.6 million tonnes for corn, 1.8 million to 2.8 million tonnes for soybeans, and 200,000 to 600,000 tonnes for wheat. Meanwhile, Brazilian farmers are bracing for losses as below-normal rainfall in the country's main soybean producing areas are expected during the first few days of 2019. Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 511.50 1.00 +0.20% +0.29% 517.86 40 CBOT corn 375.50 1.00 +0.27% +0.60% 378.28 47 CBOT soy 885.00 2.50 +0.28% +0.23% 906.53 26 CBOT rice 10.23 $0.00 +0.00% -2.53% $10.76 16 WTI crude 45.63 $1.02 +2.29% -1.28% $50.62 Currencies Euro/dlr $1.146 $0.003 +0.24% +0.93% USD/AUD 0.7050 0.002 +0.24% -0.21% (Reporting by Emily Chow; editing by Richard Pullin and Sunil Nair)

GRAINS-Soybean, corn prices edge up, but demand concerns drag

27 Dec 2018

* Broad-based market rally drives up soybeans, corn, wheat * But ample supplies, tepid demand for U.S. cargoes limit gains (Updates prices) By Emily Chow KUALA LUMPUR, Dec 27 Chicago soybean and corn futures edged up on Thursday amid a broad-based rally in financial and commodity markets, but remained near one-month lows on concerns over tepid overseas demand for U.S. supplies. Wheat inched higher but was also trading close to one-month lows after Russia, the world's top supplier of the commodity, raised its grain export forecast last week. Asian shares on Thursday latched on to a dramatic surge on Wall Street as markets, battered by recent deepening political and economic gloom, cheered upbeat U.S. data and the Trump administration's effort to shore up investor confidence. The most-active soybean contract on the Chicago Board of Trade had gained 0.5 percent to $8.87-1/2 a bushel by 0338 GMT, after falling 1.6 percent in the last session. Corn was up 0.5 percent at $3.75 a bushel, after losing 1.2 percent the day before. Wheat added 0.5 percent to $5.12-1/2 a bushel, having lost 1.3 percent on Wednesday. The market was disappointed that there were no signs of fresh sales of U.S. soybeans to China, the world's top importer of the oilseed. China bought U.S. soybeans on Dec. 12 in the first big deals in six months, after U.S. President Donald Trump and his Chinese counterpart Xi Jinping met on Dec. 1 and set a 90-day negotiating window to resolve their trade differences. The U.S. Department of Agriculture is not publishing details of daily export sales during the federal government's partial shutdown. USDA data showed the United States inspected 651,181 tonnes of soybeans for export last week. Grains prices at 0338 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 512.50 2.50 +0.49% -0.77% 517.90 43 CBOT corn 375.00 1.75 +0.47% -0.73% 378.38 46 CBOT soy 887.50 4.50 +0.51% -1.06% 907.08 29 CBOT rice 10.40 $0.04 +0.34% -0.95% $10.77 24 WTI crude 46.06 -$0.16 -0.35% +8.30% $51.02 Currencies Euro/dlr $1.138 $0.003 +0.25% +0.16% USD/AUD 0.7060 0.000 -0.07% +0.33% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Emily Chow; Editing by Sai Sachin Ravikumar and Joseph Radford)

Malaysia reviewing palm oil export taxes amid bulging stockpiles

26 Dec 2018

KUALA LUMPUR Malaysia, the world's second-largest palm oil producer, is reviewing the duty structure for its exports of the edible oil, according to its minister in charge of agriculture produced for export, to boost demand and reduce burgeoning stockpiles.

High stocks, low prices clog palm oil supply chain in Southeast Asia

14 Dec 2018

KUALA LUMPUR Palm oil suppliers across Southeast Asia are struggling to cope with record output, with plantations delaying harvest and mills stalling on deliveries as storage tanks overflow, multiple industry sources said.

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