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MARKET DEVELOPMENT
VEGOILS-Palm Down for Second Day, Hits Lowest in More Than A Week
calendar19-05-2015 | linkReuters | Share This Post:

19/05/2015 (Reuters) - Malaysian palm oil futures slipped for a second day on Monday in light volume to their lowest level in more than a week as competing vegetable oil markets fell and as the ringgit strengthened, traders said.

By Monday's close, the benchmark August contract on the Bursa Malaysia Derivatives exchange had edged down 0.3 percent to 2,182 ringgit ($608.77) a tonne, a second day of losses after shedding 0.8 percent on Friday. Earlier in the session, the contract touched the 2,169 ringgit level, its lowest since May 8.

"The market was down a bit because the ringgit has strengthened a bit, and Dalian RBD palm olein is down a bit as well," a trader with a foreign commodities brokerage in Kuala Lumpur, said, referring to the Refined, Bleached and Deodorised Palm Olein contract on the Dalian Commodity Exchange.

Total traded volume stood at 30,917 lots of 25 tonnes each, just below the average 35,000 lots traded.

Technical charts show that palm could fall to 2,148 ringgit per tonne, as a drop on May 15 suggests the completion of a rebound from the April 29 low of 2,070 ringgit.

The Malaysian ringgit edged down 0.17 percent against the dollar on Monday, but has gained around 0.8 percent over the past week and around 3.8 percent in the last two months.

In other markets, oil prices rose on Monday after Islamic State militants said they had seized control of the key city of Ramadi in western Iraq, raising fears of deeper turmoil in the oil-producing country.     

The U.S. July soyoil contract edged up 0.09 percent in late Asian trade, while the most active September soybean oil contract on China's Dalian Commodity Exchange lost 0.37 percent. The most active September palm oil contract on the Dalian bourse fell 0.7 percent.
  
 Palm, soy and crude oil prices at 1056 GMT
                                                               
 Contract        Month    Last   Change     Low    High  Volume
 MY PALM OIL      JUN5    2189    -2.00    2177    2195    1666
 MY PALM OIL      JUL5    2187    -1.00    2172    2193    8362
 MY PALM OIL      AUG5    2182    -6.00    2169    2188   16076
 CHINA PALM OLEIN SEP5    5100   -36.00    5062    5110  590556
 CHINA SOYOIL     SEP5    5864   -22.00    5826    5870  637412
 CBOT SOY OIL     JUL5   33.12    +1.20   32.96   33.18    4287
 INDIA PALM OIL   MAY5  450.90    +1.20  448.70  452.70     719
 INDIA SOYOIL     JUN5  603.50    +1.45  602.40  605.50   23050
 NYMEX CRUDE      JUN5   60.21    +0.52   59.73   60.88   13594
                                                               
 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
  
($1 = 3.5695 ringgit)
($1 = 6.2034 Chinese yuan)
($1 = 63.5250 Indian rupees)