15/04/2010 (Bloomberg) - Palm oil futures fell for a fourth day, the longest losing streak in almost a month, as exports from Malaysia, the world’s second-largest supplier, declined in the first half of April and China’s stockpiles rose.

Palm oil for June delivery lost as much as 0.6 percent to 2,514 ringgit ($789) a metric ton on the Malaysia Derivatives Exchange before trading at 2,521 ringgit a ton at the 12:30 p.m. trading break in Kuala Lumpur.

Malaysia’s palm oil exports fell 28 percent from a month earlier to 480,966 tons in the first 15 days of April, according to data released today by independent market surveyor Intertek. Inventories in China, the world’s second-biggest importer, were the highest in 18 months, the China National Grain & Oils Information Center said today.

“That could have a short-term impact on the price,” Ivy Ng, an analyst at CIMB Investment Bank Bhd., said by phone from Kuala Lumpur today.

China’s palm oil imports from Malaysia surged 37 percent to 1.06 million tons in the first quarter from a year ago, according to data from the Malaysian Palm Oil Board. A slowdown of Chinese purchases “is not unexpected,” CIMB’s Ng said.

Soybean oil for July delivery fell 0.3 percent to 40.21 cents a pound on the Chicago Board of Trade.

The oils information center today lowered its forecast for the nation’s soybean oil imports this year by 500,000 tons to 1.8 million tons because of tougher inspection standards. The country accounted for 27 percent of global soybean oil imports last year, according to U.S. Department of Agriculture data.

Brazil ‘Ready’
Brazil is “ready” to boost exports to China after the Asian nation blocked Argentine shipments, Brazil’s Agriculture Minister Wagner Rossi said yesterday. Brazil is the world’s third-largest soybean oil exporter after Argentina and the U.S., according to the USDA. Brazil is also the world’s second-largest grower and shipper of soybeans.

Still, China may opt to boost palm oil purchases to make up for smaller soybean oil imports from Argentina and on concern that increased crushing of the beans this year may flood the market with soybean meal that cannot be absorbed by the animal feed market, CIMB’s Ng said.

A ton of soybeans makes as much as 190 kilograms of oil. The rest becomes soybean meal, which is mixed with corn or wheat and nutrients to make animal feed, Ng said. A metric ton is equal to 1,000 kilograms.