Palm slips on weaker related edible oils
11.04.2018 (The Edge Markets MY) - KUALA LUMPUR (April 11): Malaysian palm oil futures were lower in late trade on Wednesday, recording a third straight day of losses, on the back of weaker related edible oils on the U.S. Chicago Board of Trade and China's Dalian Commodity Exchange.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 0.1% to 2,431 ringgit (US$627.68) a tonne at the end of the trading day.
Trading volumes stood at 36,862 lots of 25 tonnes each at the close of trade.
"The market is still under correction and following weaker related oils," said a Kuala Lumpur-based futures trader.
Another trader said the market is taking a break from recent movements and would trade in the 2,400-2,450 ringgit range.
Palm oil rose to a five-week high last week, after Malaysia said it would extend tax exemptions on crude palm oil (CPO) exports to a fourth straight month in April, a move aimed at cutting inventories and propping up prices.
It fell over 1% in the previous session on bearish data from industry regulator, the Malaysian Palm Oil Board.
Palm oil production rose 17.2% to 1.57 million tonnes in March from the previous month, while exports climbed 19.2% to 1.57 million tonnes, the data showed.
While stockpiles fell 6.2% to 2.32 million tonnes, the decline was smaller than market expectations. A Reuters poll had forecast March end-stocks in Malaysia to decline 8.6% from February to 2.27 million tonnes.
In related oils, the Chicago Board of Trade's May soybean oil contract dropped 0.4%.
Meanwhile, May soybean oil on China's Dalian Commodity Exchange fell 1%, while the Dalian May palm oil contract was down 0.6%.
Palm oil prices are impacted by movements in rival edible oils, as they compete for a share in the global vegetable oils market.
Palm oil may break support at 2,419 ringgit per tonne and fall more towards the next support at 2,392 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices as of 1053 GMT
|
Contract |
Month |
Last |
Change |
Low |
High |
Volume |
|
MY PALM OIL |
APR8 |
0 |
-4.00 |
0 |
0 |
0 |
|
MY PALM OIL |
MAY8 |
2432 |
-4.00 |
2420 |
2437 |
348 |
|
MY PALM OIL |
JUN8 |
2431 |
-2.00 |
2422 |
2440 |
14499 |
|
CHINA PALM OLEIN |
SEP8 |
5118 |
-42.00 |
5104 |
5146 |
299152 |
|
CHINA SOYOIL |
SEP8 |
5900 |
-60.00 |
5888 |
5986 |
493598 |
|
CBOT SOY OIL |
MAY8 |
31.73 |
-0.12 |
31.65 |
31.92 |
5691 |
|
INDIA PALM OIL |
APR8 |
645.00 |
-1.10 |
642.00 |
645.4 |
423 |
|
INDIA SOYOIL |
APR8 |
769.9 |
-1.10 |
768 |
775 |
8290 |
|
NYMEX CRUDE |
MAY8 |
65.80 |
+0.29 |
65.15 |
66.00 |
158549 |
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 = 3.8730 ringgit)
(US$1 = 65.1900 Indian rupees)
(US$1 = 6.2847 Chinese yuan)