KUALA LUMPUR: Malaysian palm oil futures fell for a third straight session on Tuesday as end-stocks remained high and bullish price factors were limited.
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange lost 0.3 percent to 2,294 ringgit ($522.43) a tonne at the end of the day.
Despite an earlier recovery in the Chicago and Dalian markets, palm prices fell and trading activity remained slow, said a trader based in Kuala Lumpur.
"Generally people are still not bullish as the already high stocks are expected to increase further," he said. "The scenario doesn't look bullish at all. The El Nino is already discounted
in and demand is still slow."
Inventories in the world's no.2 producer rose to a near 15-year high at the end of October due to an unexpected rise in production.
Traders forecast end-stocks to rise more in November.
The dry weather brought about by El Nino is expected to
reduces palm yields and lower output across Indonesia, the
world's largest palm producer. This could lend support to palm
prices.
Traded volume stood at 45,132 lots of 25 tonnes each, above
the average 35,000 lots usually traded in a day.
Palm oil is expected to retest support at 2,291 ringgit per
tonne, with a good chance of breaking below this level and
falling more to the next support at 2,233 ringgit, said Wang
Tao, a Reuters market analyst for commodities and energy
technicals.
In competing vegetable oil markets, the U.S. December soyoil
contract and the January soybean oil contract on
the Dalian Commodity Exchange gained 0.4 and 0.7 percent
respectively.
Palm, soy and crude oil prices at 1013 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC5 2134 +2.00 2114 2151 986
MY PALM OIL JAN6 2225 +0.00 2207 2250 10290
MY PALM OIL FEB6 2294 -6.00 2285 2322 21519
CHINA PALM OLEIN JAN6 4166 +18.00 4122 4182 540782
CHINA SOYOIL JAN6 5494 +40.00 5416 5500 456026
CBOT SOY OIL DEC5 27.39 +1.70 27.16 27.45 5502
INDIA PALM OIL NOV5 388.80 +1.70 387.00 393.40 731
INDIA SOYOIL NOV5 600.90 +2.55 599.70 602.10 3160
NYMEX CRUDE DEC5 41.67 -0.07 41.53 42.03 27170
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 = 4.3910 ringgit)
($1 = 66.0700 Indian rupees)
($1 = 6.3771 Chinese yuan)
- Reuters
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