16.05.2018 (The Edge Markets MY) - KUALA LUMPUR (May 16): Malaysian palm oil futures edged down on Wednesday, their first decline in three days, tracking weaker related oils and due to slowing export demand.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.9% at RM2,414 (US$608.83) a tonne at the close of trade, its sharpest daily fall in nearly two weeks.

Palm had earlier jumped to a one-month high on Monday tracking a weaker ringgit following the election defeat of a coalition that ruled the country for six decades.

It ended Monday 1.5% higher, while continuing gains on Tuesday as well.

Trading volume stood at 38,942 lots of 25 tonnes each at Wednesday's close.

"Palm is lower today on last night's soyoil and also the weaker Dalian," said a Kuala Lumpur-based trader, referring to the overnight decline in soyoil on the US Chicago Board of Trade and China's Dalian Commodity Exchange.

Another trader added that she expected the market to trade sideways due to several factors.

"The market is holding on a weak ringgit and a slower-than-expected increase in production," she said, as a weaker ringgit typically supports palm by making it cheaper for holders of foreign currencies.

"But palm demand is expected to slow also as its spread against soyoil does not make it competitive. Malaysia's crude palm oil export tax is also there."

Palm oil shipments from Malaysia, the world's second largest exporter, fell 13.7-14.9% in the first half of May versus the corresponding period in April, data from inspection company AmSpec Agri Malaysia and cargo surveyor Societe Generale de Surveillance showed on Tuesday.

Traders said the demand slowdown could be attributed to Malaysia's resumption of a crude palm oil export tax, which was set at 5% in May following four previous months of suspension.

Malaysia announced on Wednesday it will keep its crude palm oil tax rate at 5% in June.

In other related oils, the Chicago July soybean oil contract declined 0.4% on Tuesday and was last down 0.6% on Wednesday.

Meanwhile, the September soybean oil on China's Dalian Commodity Exchange was down 0.8% and the Dalian September palm oil contract fell 0.4%.

Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices, as of 1045 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	JUN8	2403	-28.00	2397	2422	1015
MY PALM OIL	JUL8	2411	-22.00	2402	2424	9830
MY PALM OIL	AUG8	2415	-22.00	2406	2427	12934
CHINA PALM OLEIN	SEP8	5066	-18.00	5034	5092	311032
CHINA SOYOIL	SEP8	5740	-44.00	5720	5778	379490
CBOT SOY OIL	JUL8	30.92	-0.20	30.9	31.09	6218
INDIA PALM OIL	MAY8	653.30	-4.70	652.20	657	770
INDIA SOYOIL	MAY8	751.6	-3.20	750.6	753	8890
NYMEX CRUDE	JUN8	71.20	-0.11	70.85	71.34	116430

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 = RM3.9650)
(US$1 = 67.8525 Indian rupees)
(US$1 = 6.3755 Chinese yuan)