The Edge Markets (27/11/2017) - KUALA LUMPUR (Nov 27): Malaysian palm oil futures fell to their lowest in a week during early trade on Monday, tracking softer edible oils on the Chicago Board of Trade and China's Dalian Commodity Exchange.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 1.4% to 2,594 ringgit (US$630.68) a tonne at the midday break. It earlier fell to 2,592 ringgit, its lowest since Nov 21.   

Traded volumes stood at 13,839 lots of 25 tonnes each at noon.

"Palm is down on weaker U.S. soyoil and (other oils on) the Dalian Commodity Exchange," said a futures trader from Kuala Lumpur.

Another trader said palm prices could see further declines on prospects of higher-than-forecast output in Malaysia, the world's second largest producer after Indonesia. Production rose 12.9% at end-October, according to industry regulator data.

Weakening exports could also further weigh on palm prices.

Shipments from Malaysia fell 8.4% for the Nov 1-25 period, according to cargo surveyor Intertek Testing Services on Saturday. 

In other related edible oils, the December soybean oil contract on the Chicago Board of Trade was down 0.4%, while the January soybean oil contract on the Dalian Commodity Exchange fell 1%.

Dalian's January palm olein contract dropped 1.9%. Palm oil is impacted by movements in other edible oils, as they compete for a share of the global vegetable oils market.Palm oil may fall into a range of 2,519-2,555 ringgit per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 0542 GMT

Contract                             Month      Last      Change     Low     High     Volume

MY PALM OIL                DEC7       2500      -45.00     2500      2525         61

MY PALM OIL                JAN8        2561      -39.00     2561      2580         950

MY PALM OIL                FEB8        2594      -36.00     2592      2612         6027

CHINA PALM OLEIN     MAY8     5404      -92.00     5394      5514         276490

CHINA SOYOIL              JAN8        5872      -58.00     5868      5944         182438

CBOT SOY OIL               JAN8        33.97      -0.12      33.91      34.3         9244

INDIA PALM OIL           NOV7      588.10    -2.10      586.40    588.8       195

INDIA SOYOIL               DEC7       733.15    -0.40      731.95    733.7       4810

NYMEX CRUDE             JAN8        58.70      -0.25      58.62     58.99        35627

 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 = 4.1130 ringgit)

(US$1 = 64.7450 Indian rupees)

(US$1 = 6.5998 Chinese yuan)