Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: palm oil rises on export data

Twitter Linkedin eCard

Palm oil made the best early headway on Friday, adding more than 2% on strong export data and the robust overnight performance in soybeans, its rival vegetable oil source.

Signals from external markets were set green, with Tokyo shares closing 1.9% higher and oil, just, in positive territory. New York crude for June added $0.14 to $58.76 a barrel by 06:00 GMT.

And palm oil had an extra reason to be cheerful – data from Intertek Testing Services, the cargo surveyor, showing exports up 1.7% at 624,000 in the first 15 days of May.

Bursa Malaysia's benchmark July palm oil contract added 56 ringgit to 2,740 ringgit in the morning session.

Output question

"The exports number is still friendly," a trader at a Kuala Lumpur-based brokerage told Reuters, the news agency.

"Now the important thing is whether or not we will see growth in production this month."

Palm oil is also being helped by suggestions that hot weather will hold back Malaysian oil palm yields.

Stop press: Societe Generale de Surveillance has estimated Malaysian palm oil exports up 8% at 629,000 tonnes in the May 1-15 period, which appears even more friendly than Intertek's for palm oil's afternoon session.

Firm soybeans

Traders may also take heart in a firm performance by Chicago soybeans during Asian trading. Palm oil has been held back by concerns it is becoming too expensive compared with its soy oil rival.

Chicago's July soybeans contract was up 2.5 cents to $11.50 a bushel, with forward contracts also ahead.

The rise reflected the same old concerns, traders said – Argentina's poor crop and bumper Chinese exports.

"The yields in South America are not getting any better and apparently the quality is pretty ordinary," said Paul McKay, a director with Commodity Broking Services in Australia.

He added that the weather which has delayed US corn plantings was "even going to delay some of the soybeans too".

Not that this was helping corn much on Friday, with the July contract slipping 0.5 cents to 4.27 ¾ a bushel and later contracts also subdued.

Investors considered late plantings baked into the price, a trader said.

It was the same story for wheat, off 0.75 cents to $5.92 ½ for July.

Twitter Linkedin eCard
Related Stories

Brokerage forecasts for Friday's US Cattle on Feed report

The consensus estiamte is for a gain in the feedlot herd last month. But that disguises a wide range of forecasts for the placement number

Morning markets: Malaysia tax move takes wind out of palm oil's sails

Still, elsewhere in oilseeds, soybeans extend their recovery on revived Argentina dryness worries. Even wheat manages headway. But what will data alter show?

Evening markets: Acreage data overshadow grain markets. But cocoa heads higher

Soyoil and soymeal complex gains, helped by Argentine weather and US biofuels talk. But corn, soybeans and wheat struggle as key data hit the radar

Millennials drive Louis Dreyfus campaign to become 'more than a merchant'

LDC throws further light on a sector shake-up which has already this week seen ADM unveil a revamp, while Cargill declared traditional crop trading "over"
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

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