Palm falls on rising stockpiles
01.10.2018 (The Edge Markets MY) - KUALA LUMPUR (Oct 1): Malaysian palm oil futures dropped on Monday as caution over rising stockpiles outweighed positive September export numbers.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was down 0.3% at RM2,168 (US$523.55) a tonne at noon.
Trading volumes stood at 32,628 lots of 25 tonnes each.
"The market is down on rising palm oil stockpiles, but the weaker ringgit and crude oil prices provide some underlying support," a Kuala Lumpur-based trader said.
A weaker ringgit makes palm oil more attractive to traders holding foreign currencies. The currency was trading 0.1% lower on Monday.
Malaysian inventories last rose to a seven-month high of 2.49 million tonnes in August, according to official data from a Malaysian industry regulator.
Last week, industry analyst Dorab Mistry pegged Malaysia's peak end-stocks at 3-3.3 million tonnes for the year, while estimating that Indonesia's inventories are currently close to 5 million tonnes and will keep rising.
Another trader said the September export numbers failed to cheer the market.
Exports of Malaysian palm oil products for September rose 51.6% compared with August, cargo surveyor Intertek Testing Services said on Friday, while independent inspection company AmSpec Agri Malaysia data showed the exports rose 49.2%.
In other related oils, the Chicago September soybean oil contract was down 0.1%.
The Dalian January soybean oil contract and January palm oil contract were untraded as the Dalian Commodity Exchange was closed for national holidays in China.
Palm oil prices are affected by movements of other edible oils as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0456 GMT
|
Contract |
Month |
Last |
Change |
Low |
High |
Volume |
|
MY PALM OIL |
OCT8 |
2094 |
-24.00 |
2094 |
2125 |
7 |
|
MY PALM OIL |
NOV8 |
2134 |
-9.00 |
2122 |
2155 |
4440 |
|
MY PALM OIL |
DEC8 |
2168 |
-6.00 |
2158 |
2186 |
12697 |
|
CHINA PALM OLEIN |
JAN9 |
0 |
+0.00 |
0 |
0 |
0 |
|
CHINA SOYOIL |
JAN9 |
0 |
+0.00 |
0 |
0 |
0 |
|
CBOT SOY OIL |
OCT8 |
28.65 |
-0.03 |
28.65 |
28.7 |
186 |
|
INDIA PALM OIL |
OCT8 |
584.80 |
-3.10 |
584.50 |
587.2 |
82 |
|
INDIA SOYOIL |
OCT8 |
744 |
-2.50 |
743.05 |
745 |
770 |
|
NYMEX CRUDE |
NOV8 |
73.54 |
+0.29 |
73.28 |
73.65 |
19906 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = RM4.1410)
(US$1 = 72.8200 Indian rupees)
(US$1 = 6.8680 Chinese yuan)