Vegoils Palm oil snaps 2-day losing streak as traders see slowing production

by **Cals** Thu 17 Dec 2015, 00:43

Vegoils

[size=28]Palm oil snaps 2-day losing streak as traders see slowing production

By Reuters / Reuters | December 16, 2015 : 2:42 PM MYT

KUALA LUMPUR (Dec 16): Malaysian palm oil snapped two sessions of losses on Wednesday, gaining as much as 4.3% in intraday trade, as forecasts of falling production by traders lent support to prices.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange rose 3.6% to 2,414 ringgit (US$560.87) a tonne by the midday break on Wednesday.

Palm touched a two-month high of 2,442 ringgit on Friday, but it fell 3% on Tuesday, the sharpest single-day loss since Sept 30.

Traded volume stood at 21,342 lots of 25 tonnes each at the end of the morning session.

"Production is going to be on a falling trend; most of the market players have taken into account the near 3 million stockpile," said a trader from Kuala Lumpur. "Exports are a bearish factor, but it's only a matter of time before production comes down and stocks reduce."

High inventories and slowing exports in December however are seen capping future gains on palm prices, according to traders.

Stockpiles in the world's second largest producer Malaysia saw record highs in November, government data showed last week.

Cargo surveyor data also revealed a sharp drop in palm oil product exports, falling between 34%–36% in the first 15 days of December compared with a month ago.

In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange fell 0.4%.

Palm, soy and crude oil prices at 0521 GMT

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Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	JAN6	2236	+0.00	2231	2256	172
MY PALM OIL	FEB6	2337	+6.00	2325	2361	5567
MY PALM OIL	MAR6	2414	+4.00	2400	2431	10290
CHINA PALM OLEIN	MAY6	4674	-30.00	4626	4686	892612
CHINA SOYOIL	MAY6	5564	-22.00	5524	5588	701404
CBOT SOY OIL	JAN6	30.93	+2.10	30.59	31.01	2841
INDIA PALM OIL	DEC5	397.10	+2.10	396.00	398.00	276
INDIA SOYOIL	DEC5	634.00	+2.00	634.00	634.40	315
NYMEX CRUDE	JAN6	37.09	-0.26	36.73	37.14	10601

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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 = 4.3040 ringgit)
(US$1 = 66.8650 Indian rupees)
(US$1 = 6.4639 Chinese yuan)

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