JAKARTA: Malaysian palm oil futures slipped for a third session to their lowest in more than a week, tracking declines in competing oil markets.
By Tuesday's close, the benchmark August contract on the Bursa
Malaysia Derivatives exchange had declined 1.1 percent to 2,157 ringgit
($600.84) a tonne. Earlier in the session it touched 2,154 ringgit, its lowest
since May 8.
Total traded volume stood at 34,049 lots of 25 tonnes each, below the
average of 35,000 lots.
"The palm market is in a bit of a dilemma," said a trader with a foreign
commodities brokerage in Kuala Lumpur, noting that local fundamental data was
generally supportive but external markets were negative. Palm was trading in a
$10 range in the absence of clear signals.
"Initially the market was ramped up because of El Nino talk, but we've seen
this for the past two years and nothing happens," the trader said, adding that
he was also watching for information on the imminent Indian monsoon season.
"There could be some problems in oilseed-producing areas. But if India has a
normal monsoon, the market will not go anywhere."
Traders are watching for export data for the first 20 days of May, due
tomorrow, he said.
Technical charts show that palm is still targeting 2,148 ringgit a tonne,
having rebound from the April 29 low of 2,070.
The Malaysian ringgit edged 0.61 percent lower against the dollar on
Tuesday and is down 0.78 percent this week.
In other markets, Brent crude oil fell below $66 a barrel on a stronger
dollar and evidence of ample supplies of Middle Eastern oil despite wars in
northern Iraq, Syria and Yemen.
The U.S. July soyoil contract edged down for a third day, easing 0.58
percent in late Asian trade, while the most active September soybean oil
contract on China's Dalian Commodity Exchange also lost 0.58 percent.
Palm, soy and crude oil prices at 1218 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN5 2167 -23.00 2165 2180 1565
MY PALM OIL JUL5 2165 -22.00 2161 2180 5810
MY PALM OIL AUG5 2157 -24.00 2154 2175 16618
CHINA PALM OLEIN SEP5 0 +0.00 0 0 0
CHINA SOYOIL SEP5 0 +0.00 0 0 0
CBOT SOY OIL JUL5 32.60 -3.10 32.55 32.90 7179
INDIA PALM OIL MAY5 446.80 -3.10 445.40 450.30 1575
INDIA SOYOIL JUN5 598.50 -4.40 597.20 602.80 38950
NYMEX CRUDE JUN5 58.81 -0.63 58.70 59.63 3796
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 = 3.5900 ringgit)
($1 = 6.2064 Chinese yuan)
($1 = 63.6887 Indian rupees)
- Reuetrs
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