Malaysian palm oil prices down as Malaysian exports weaken


  • Business
  • Friday, 21 Nov 2014

JAKARTA: Malaysian palm oil weakened further on Thursday after export data from the world's second-largest producer and declines in competing bean oil markets weighed on prices, but a weaker ringgit provided some support.
    "The weak ringgit, that would encourage exports, but the
first 20 days export figure came out and it's not what was
expected, it was down," said a trader with a foreign commodities
brockerage in Kuala Lumpar.
    Exports of Malaysian palm oil products for Nov. 1-20 fell 6.4
percent to 837,659 tonnes from 894,697 tonnes for Oct. 1-20,
cargo surveyor Intertek Testing Services said on Thursday.
[MALAYSIA PALM/ITS]
    The ringgit continued its decline, edging down 0.18 percent
on Thursday, and has lost 6.8 percent against the dollar since
the beginning of September. A weaker ringgit makes palm oil more
attractive to international buyers.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange ended down 0.98 percent on Thursday
at 2,223 ringgit ($660.62) per tonne. 
    Total traded volume stood at 36,165 lots of 25 tonnes, just
above the average 35,500 lots.
    
   Declines in competing bean oils also dragged palm prices
lower.
    "Now the e-board is trading down on the bean oil, and the
e-board on the soy bean oil is down a bit. Coupled with the
export figures from ITS, the market is under pressure," the
trader told Reuters, referring to the markets' electronic trading
boards.
    The U.S. soyoil contract for December eased 0.43
percent on Thursday, while the most active May soybean oil
contract on the Dalian Commodities Exchange edged down
0.95 percent.
      Technicals showed palm oil may drop to 2,213 ringgit per
tonne, as indicated by its wave pattern and a Fibonacci
projection analysis, said Reuters market analyst Wang Tao.
  
    In other markets, Brent crude oil steadied above $78 a barrel
on Thursday as reports that oil producers would agree to cut
output next week offset weak economic data from China and Europe.
 
 Palm, soy and crude oil prices at 1403 GMT
                                                                 
 Contract        Month    Last   Change     Low    High  Volume
 MY PALM OIL      DEC4    2214   -21.00    2206    2228      61
 MY PALM OIL      JAN5    2218   -24.00    2211    2244    3792
 MY PALM OIL      FEB5    2223   -22.00    2215    2247   20123
 CHINA PALM OLEIN MAY5    5288   -34.00    5280    5306  168000
 CHINA SOYOIL     MAY5    5818   -56.00       0       0  400842
 CBOT SOY OIL     DEC4   32.37    +1.30   32.33   32.58    7660
 INDIA PALM OIL   NOV4  447.20    +1.30  445.70  448.00     395
 INDIA SOYOIL     NOV4  577.00    +6.10  565.70  580.00    9635
 NYMEX CRUDE      DEC4   74.68    +0.10   74.17   74.88    5510
                                                                 
 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 US dollar = 6.1230 Chinese yuan)
(1 US dollar = 61.9200 Indian rupee)
(1 US dollar = 3.3650 Malaysian ringgit)
- Reuters
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