(Updates prices, adds Indonesian export tax)
* Palm hovers near 1-1/2-month high of 2,446 ringgit in
* Malaysia's Oct 1-20 palm oil exports up 3-8 pct -surveyors
* Palm tracks gains in China, U.S. soy markets -trader
* Palm oil may retrace to 2,406 ringgit -technicals
By Anuradha Raghu
KUALA LUMPUR, Oct 21 (Reuters) - Malaysian palm futures
jumped on Monday to their highest in 1-1/2 months, lifted by
gains in the U.S. and Chinese soy markets after positive
economic data from the Asian giant signalled growing demand for
food and fuel.
The U.S. soyoil contract for December rose 0.5
percent in late Asian trade, while the most-active January
soybean oil contract on the Dalian Commodities Exchange
rose 1.5 percent.
The palm market generally tracks soyoil, a competing
vegetable oil used as a substitute for the tropical oil.
"The market is up on the back of China and U.S. soybean oil
markets," said a trader with a foreign commodities brokerage.
"Now it's holding at 2,400 ringgit, which is a strong
short-term support level," the Kuala Lumpur-based trader added.
Demand for palm was also seen steady, lending support to
Exports of Malaysian palm oil during Oct. 1-20 rose three
percent to 1,026,488 million tonnes, cargo surveyor data showed
early Monday, boosted by buying from Europe and China.
Another cargo surveyor, Societe Generale de Surveillance
showed exports rose 8 percent compared to the same period a
By Monday's close, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange had extended the
morning's gains to stand up 1.5 percent at 2,437 ringgit ($769)
per tonne. Prices earlier rose to 2,446 ringgit, the highest
level since Sept. 9.
Total traded volume stood at 25,240 lots of 25 tonnes each,
much lower than the usual 35,000 lots.
Technicals are bearish. Malaysian palm oil faces resistance
at 2,449 ringgit per tonne and may retrace to 2,406 ringgit,
Reuters market analyst Wang Tao said. But he added that a rise
to 2,461 ringgit could confirm a break above resistance, leading
to a new resistance target of 2,491 ringgit.
Gross domestic product in China's giant economy rose 7.8
percent from a year earlier, its quickest pace this year, giving
a boost to commodity markets including oil.
"The positive outlook in China's economy is likely to
support demand for the commodity," Phillip Futures analyst Tan
Chee Tat said in a note on Monday, noting that China is the
world's second-largest palm oil consumer after India.
Palm oil prices have climbed 5 percent so far in October,
fuelled by optimism that output volumes in Malaysia, the world's
second-largest producer, may not surge as much as estimated.
Traders and planters say despite being expected to be the
highest-producing month this year, October's pace may show only
a tiny increase, leaving stocks below the 2-million-tonne mark.
Stocks now stand at 1.78 million tonnes.
Indonesia, the world's top palm oil producer, kept its
export tax for crude palm oil unchanged at 9 percent for
November, an official at the industry ministry said. Malaysia
will keep its tax at 4.5 percent.
Investors also await the release of nearly three weeks of
delayed USDA data, including export sales figures likely to show
nearly 3 million tonnes of soybeans were sold to overseas
In other markets, oil fell on Monday amid pressure from
strong supplies, with losses limited by expectations that the
U.S. Federal Reserve will delay reining in its money-printing
programme until next year, helping shore up the demand outlook.
Palm, soy and crude oil prices at 1011 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV3 2432 +40.00 2417 2432 388
MY PALM OIL DEC3 2439 +40.00 2417 2443 3984
MY PALM OIL JAN4 2437 +36.00 2418 2446 13307
CHINA PALM OLEIN MAY4 6154 +170.00 6058 6186 652638
CHINA SOYOIL MAY4 7258 +108.00 7216 7290 683474
CBOT SOY OIL DEC3 41.89 +0.21 41.67 42.09 5668
NYMEX CRUDE NOV3 99.79 -1.02 99.77 100.95 4777
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
Crude in U.S. dollars per barrel
($1=3.17 Malaysian ringgit)
(Editing by Anupama Dwivedi)
- Commodity Markets
- Asia News
- Palm oil