Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: palm and soy reach fresh peaks

Twitter Linkedin

Palm oil and soybeans began a new week with an old attitude – to make rapid headway amid talk of dwindling stocks and robust demand.

Bullish investors in both crops, which are major feedstocks for vegetable oil processors, fed off each others' optimism.

Palm oil was helped higher by Friday's strong close for soybeans, after strong US export data and further cuts to estimates for Argentina's soybean crop.

July palm oil had surged 147 ringgit, or 6.0%, to 2,595 ringgit a tonne by 07:30 GMT on Bursa Malaysia on decent volume, the highest for a benchmark contract since August.

'Supply driven'

Meanwhile, palm's strong performance helped soybeans to a fresh seven-month high. Chicago soybeans for May delivery were 2.3% higher at $11.26 ¾ a bushel, the highest for a leading contract since September 26.

More distant contracts lagged, but still showed some potential in the new crop. November beans adding 1.8% to $9.89 a bushel, the highest for this contract since January.

"The soya and palm rally is all supply driven," a Kuala Lumper trader told Reuters, the news agency.

"There is very standard demand but less supply of vegoils."

The next key marker on palm oil supply will come next Monday, with data on Malaysian stocks.

Toby Hassall, at Commodity Warrants Australia, said: "It's the same story for soybeans, strong demand for US soy out of China and dwindling stockpiles."

Planting progress

However, it was a different story for corn and wheat, which fell on rumours of strong progress in US plantings, although this has yet to be confirmed by the weekly official data.

May wheat was 7 cents lower at $5.50 ¼ a bushel, with more distant contracts showing smaller losses. September wheat was 3.5 cents down at $5.93 a bushel.

Corn showed a similar pattern, with May down 3.25 cents at $4.03 a bushel, while September stood 1.5 cents lower at $4.21 a bushel.

Stimulus from external markets was limited by holidays in many countries, including Japan and the UK.

Oil added a little on the fat gains made on Friday, with New York crude for June up 10 cents at $53.50 a barrel and Brent 33 cents higher at $53.18 a barrel.

Twitter Linkedin
Related Stories

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa

December makes poor stab of bringing festive cheer to ag bulls

This might have been the month when grain prices began a "breakout", higher. Instead, ag prices are hitting their lowest in at least 26 years

Morning markets: Wheat futures set fresh contract low

... dragging on the corn market, amid selling ahead of a key US report. The Argentine weather outlook depresses soybean prices

Soft commodities better bets than grains for 2018, says Commerzbank

Indeed, investors are overrating prospects for corn and wheat futures. But cocoa futures have scope for gains, and coffee could see a "price surge"
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069