Malaysian palm oil price climbs on export data, ringgit weakness


JAKARTA: Malaysian palm oil futures rose as much as 3 percent on Monday as monthly cargo surveyor export data and a weak ringgit combined to support prices.
    The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange ended 2.3 percent higher at the close, at 2,152 ringgit ($505) a tonne. 
    Prices earlier hit a near a two-week low of 2,088 ringgit, before climbing as high as 2,167 ringgit, and have now gained 8 percent so far this month.
    Traded volume stood at 53,510 lots of 25 tonnes each, well above the average 35,000 lots usually traded at the end of the session.
    "The market opened lower and then went all the way back up, most likely on the back of the positive export figure," said a trader with a commodities brokerage in Kuala Lumpur. 
    "The market has seized the opportunity to address last week's selling pressure."
    On the data front, exports of Malaysian palm oil products
for Sept. 1-20 rose 7.6 percent, cargo surveyor Intertek Testing
Services (ITS) said. 
    A weak Malaysian ringgit, which makes palm cheaper
for offshore buyers, also provided a fillip for palm, traders
said.
    The ringgit has lost almost 18 percent so far this year, and
is emerging Asia's worst performing currency.
    On Friday, palm oil touched its lowest in more than a week
after India raised its import tax on crude vegetable oils.
 
    "We expect this news to have relatively muted impact on CPO
prices as we are of the view that the higher import duties for
edible oils in India will not reduce demand for palm oil in
India significantly," CIMB said in a research note.
    "As such, we are sticking to our average CPO price forecast
of 2,230 ringgit per tonne for 2015."
    Palm oil still targets 2,068 ringgit per tonne, as indicated
by a Fibonacci retracement analysis, said Reuters market analyst
for commodities and energy technicals Wang Tao. 
    On the downside, Indonesia's crude palm oil output in August
likely hit its highest in at least a year, a Reuters survey
showed. 
    In competing vegetable oil markets, the most active January
soybean oil contract on the Dalian Commodity Exchange
slipped 0.2 percent, while the U.S. December soyoil contract
 added 1 percent in late Asian trading.
    Crude oil prices rose by more than 1 percent after data
showed U.S. drilling slowed and a report said $1.5 trillion
worth of planned production was uneconomic at current prices. 
 
    Palm oil often takes price direction from crude oil, as
vegetable oils are increasingly used in making renewable fuels.
    
  Palm, soy and crude oil prices at 1004 GMT                                                                                                                                                                                             
                                                                                                                                                                                                                                         
  Contract        Month    Last   Change     Low    High  Volume                                                                                                                                                                         
  MY PALM OIL      OCT5    2085   +51.00    2059    2090     127                                                                                                                                                                         
  MY PALM OIL      NOV5    2125   +53.00    2056    2138    5267                                                                                                                                                                         
  MY PALM OIL      DEC5    2152   +49.00    2088    2167   27781                                                                                                                                                                         
  CHINA PALM OLEIN JAN6    4294   +20.00    4210    4298  872304                                                                                                                                                                         
  CHINA SOYOIL     JAN6    5382    -8.00    5330    5388  463540                                                                                                                                                                         
  CBOT SOY OIL     DEC5   26.51    +4.70   26.18   26.54    5169                                                                                                                                                                         
  INDIA PALM OIL   SEP5  394.40    +4.70  390.20  396.00     980                                                                                                                                                                         
  INDIA SOYOIL     OCT5  572.35    +0.60  569.30  573.50   17070                                                                                                                                                                         
  NYMEX CRUDE      OCT5   45.39    +0.71   44.69   45.61    5912                                                                                                                                                                         
                                                                                                                                                                                                                                         
  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 = 4.2650 ringgit)
($1 = 65.6600 Indian rupees)
($1 = 6.3676 Chinese yuan renminbi)
- Reuters
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