The Edge Markets (24/10/2018) - KUALA LUMPUR (Oct 24): Malaysian palm oil futures fell to their lowest level in more than a week with a second consecutive day of losses on Wednesday, tracking U.S. soyoil losses on the Chicago Board of Trade (CBOT). 

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was down 0.8% at 2,200 ringgit (US$528.15) a tonne at the close.

It earlier fell as much as 1.3% to 2,189 ringgit, its lowest since Oct 15.     

Trading volumes stood at 28,065 lots of 25 tonnes each at the close of trade.

"The (palm) market is impacted by spillovers in night weakness from CBOT soyoil and weakness in China's Dalian Commodity Exchange," a Kuala Lumpur-based trader said, adding forecasts of rising production in October also weighed on the market.

Malaysian palm oil production is forecast to rise in the last quarter of the year, in line with the seasonal trend before tapering off early next year.  
 
September inventories rose to their highest in eight months, as production came in higher than exports. September production rose 14.4% from August to its strongest in 10 months at 1.85 million tonnes. That was also the highest September level since 2015.

Another trader added sharp overnight losses in crude oil had also weighed on palm. Oil prices plunged about 5% on Tuesday to two-month lows, as a sell-off in global equity markets raised worries about demand growth and after Saudi Arabia said it could supply more crude quickly if needed.

In related oils, the Chicago December soybean oil contract declined 1.3% on Tuesday, after the U.S. Department of Agriculture said the U.S. harvest was making faster progress than expected.

It was last down 0.1% on Wednesday.

Meanwhile, the January soybean oil contract on the Dalian Commodity Exchange fell as much as 1.3%, while the January palm oil contract dropped 1.6%.

Palm oil prices are affected by movements of other edible oils that compete in the global vegetable oils market.

Palm oil could break support at 2,219 ringgit a tonne and fall to the next support at 2,199 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

 Palm, soy and crude oil prices at 1100 GMT

 Contract                        Month   Last  Change  Low   High  Volume
 MY PALM OIL             NOV8    2103  -19.00    2092   2108    1043
 MY PALM OIL             DEC8    2154  -15.00    2142   2157    3315
 MY PALM OIL             JAN9    2200  -18.00    2189   2207   11402
 CHINA PALM OLEIN  JAN9   4704   -74.00    4686    4762  304326
 CHINA SOYOIL          JAN9    5696  -74.00    5684    5764  354774
 CBOT SOY OIL          DEC8   28.73   -0.03    28.65   28.79    5750
 INDIA PALM OIL        OCT8   583.00  -4.20   582.50  586.4     605
 INDIA SOYOIL           NOV8   759.25  -2.90   757.9    763   19830
 NYMEX CRUDE        DEC8    66.53   +0.10   66.05  66.67  148178

 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 = 4.1655 ringgit)
(US$1 = 6.9406 Chinese yuan)
(US$1 = 73.2075 Indian rupees)

Read more at http://www.theedgemarkets.com/article/palm-falls-oneweek-low-overnight-soyoil-losses