Vegoils Palm oil ease for 2nd day; market eyes U.S., Malaysia data

by **Cals** Thu 10 Dec 2015, 01:04

Vegoils

[size=28]Palm oil ease for 2nd day; market eyes U.S., Malaysia data

By Reuters / Reuters | December 9, 2015 : 8:29 PM MYT

SINGAPORE (Dec 9): Malaysian palm oil futures slid for a second session on Wednesday, as traders squared positions ahead of key supply and demand data from the United States and Malaysia.
The decline were limited by forecasts of lower production in the months ahead, due to dryness from the El Nino weather pattern. At the same time, demand is likely to rise as top producer Indonesia uses more palm oil to make biodiesel.
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed down 0.5% or 11 ringgit to 2,385 ringgit (US$559) a tonne.
Traded volume stood at 45,701 lots of 25 tonnes each.
"Right now there is too much oil around, we are expecting lower production in December, but the decline in not going to be a lot," said one trader at a plantation company in Malaysia's Sabah state.
"We expect the impact of El Nino to start cutting yields next year."
The U.S. Department of Agriculture will issue later on Wednesday, its monthly crop report which will shed light on production and demand for soybeans and other agricultural products.
The crop data at 1700 GMT is expected to indicate lower soybean supply, as well as increased corn and wheat supply, a Reuters poll of analysts showed.
Malaysian November palm stocks likely topped a previously reached near-15-year high on slowing exports, despite output falling in line with a year-end seasonal trend, a Reuters poll showed. The Malaysian Palm Oil Board data is due on Dec 10, after 0430 GMT.
Palm oil may revisit its Dec 8 low of 2,380 ringgit per tonne, as the correction from the Dec 7 high of 2,438 ringgit is not yet completed, Wang Tao, Reuters analyst for commodities and energy technicals said in a report.
Australia's weather bureau said the current El Nino event is near peak intensity and likely to persist well into 2016, although some indicators are showing signs of easing.
El Nino typically brings rains and flooding to parts of the Americas and drought to eastern Australia and parts of Asia.
Biodiesel producers in Indonesia are planning to boost output capacity next year, by almost a fifth to 8 million kilolitres, to meet higher mandates.
In rival vegetable oil markets, U.S. January soyoil contract slid 0.5%, while the May soybean oil contract on the Dalian Commodity Exchange lost more than 2%.
  Palm, soy and crude oil prices at 1008 GMT

Contract        Month    Last   Change     Low    High Volume
MY PALM OIL      DEC5       0    +0.00       0       0      10
MY PALM OIL      JAN6    2299    -4.00    2295    2321    1566
MY PALM OIL      FEB6    2385   -11.00    2375    2412   24569
CHINA PALM OLEIN MAY6    4640   -80.00    4620    4718 895522
CHINA SOYOIL     MAY6    5576 -116.00    5554    5646 1013716
CBOT SOY OIL     JAN6   31.31    -2.30   31.23   31.54    4167
INDIA PALM OIL   DEC5 409.50    -2.30 408.60 412.40     743
INDIA SOYOIL     DEC5 632.50    -0.15 630.50 635.80    6545
NYMEX CRUDE      JAN6   37.96    +0.45   37.77   38.39   38340

  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
(US$1 = 4.266 ringgit)
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