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NewsMalaysian palm oil price falls on stronger ringgit
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Malaysian palm oil price falls on stronger ringgit
by Cals Mon 30 May 2016, 02:43
Saturday, 28 May 2016 | MYT 6:50 AM
The ringgit hit 4.0600 per dollar earlier in the day, its strongest level in more than a week, before settling at 4.0760 on Friday evening.
A stronger ringgit, the currency of trade for palm oil, makes it cheaper for holders of foreign currencies.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange declined 0.8 percent to reach 2,558 ringgit ($628) per tonne in the evening, after hitting an intraday low of 2,555 ringgit.
Palm has gained for three out of five sessions so far this week and was up 2 percent on the week, on track for its first weekly gain in three weeks. It rose 1.4 percent on Thursday.
Traded volumes stood at 51,908 lots of 25 tonnes each on Friday evening, compared with a 2015 daily average of 44,600.
"The ringgit was stronger in the morning, which started some profit-taking," a trader from Kuala Lumpur said.
"Not helping is the demand side; we are sitting in the month for Ramadan demand now but not seeing much activity."
Another trader added that the market likely fell on technical selling triggered by the stronger ringgit.
Demand for palm oil usually comes in one to two months before Ramadan, which begins in early June this year.
Leading up to Ramadan, Malaysian palm oil shipments have gained 8-11 percent over May 1-25 from last month, according to cargo surveyor data.
Better demand for palm oil and lower-than-expected output are expected to dent current stockpile levels, supporting benchmark prices.
In competing vegetable oils, the Chicago Board of Trade soyoil contract for July was up 0.7 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell 0.1 percent.
The offer price for crude palm kernel oil stood at 5026.52 ringgit per tonne in the evening, according to price assessments by Thomson Reuters.- Reuters
Malaysian palm oil price falls on stronger ringgit
KUALA LUMPUR: Malaysian palm oil futures fell at closing trade on Friday evening, weighed down by a stronger ringgit which triggered some selling, but recorded its first weekly gain in three on expectations of lower-than-expected output and steady Ramadan demand.The ringgit hit 4.0600 per dollar earlier in the day, its strongest level in more than a week, before settling at 4.0760 on Friday evening.
A stronger ringgit, the currency of trade for palm oil, makes it cheaper for holders of foreign currencies.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange declined 0.8 percent to reach 2,558 ringgit ($628) per tonne in the evening, after hitting an intraday low of 2,555 ringgit.
Palm has gained for three out of five sessions so far this week and was up 2 percent on the week, on track for its first weekly gain in three weeks. It rose 1.4 percent on Thursday.
Traded volumes stood at 51,908 lots of 25 tonnes each on Friday evening, compared with a 2015 daily average of 44,600.
"The ringgit was stronger in the morning, which started some profit-taking," a trader from Kuala Lumpur said.
"Not helping is the demand side; we are sitting in the month for Ramadan demand now but not seeing much activity."
Another trader added that the market likely fell on technical selling triggered by the stronger ringgit.
Demand for palm oil usually comes in one to two months before Ramadan, which begins in early June this year.
Leading up to Ramadan, Malaysian palm oil shipments have gained 8-11 percent over May 1-25 from last month, according to cargo surveyor data.
Better demand for palm oil and lower-than-expected output are expected to dent current stockpile levels, supporting benchmark prices.
In competing vegetable oils, the Chicago Board of Trade soyoil contract for July was up 0.7 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell 0.1 percent.
The offer price for crude palm kernel oil stood at 5026.52 ringgit per tonne
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