Palm drops on weaker soyoil, slower demand growth


(April 16): Malaysian palm oil futures fell to a two-week low on Tuesday, in line for a second session of declines, tracking weaker soyoil on the US Chicago Board of Trade amid slower-than-expected demand growth.

The benchmark palm oil contract for July delivery on the Bursa Derivatives Exchange fell 0.5% to RM2,151 (US$522.98) a tonne at the midday break.

It had earlier fallen to RM2,139, its weakest level since April 2.

“The market today is down as we are still lacking strong demand. It’s not there, buyers are either well bought or are waiting for prices to come further down. Sustained demand is not there,” said a physical trader.

Malaysian palm oil shipments for the first half of April rose 1.5-6.7% from the corresponding period last month, cargo surveyors reported on Monday.

Palm was also down mirroring overnight declines in US soybean oil futures, said another trader. The Chicago May soybean oil contract had fallen 0.5% on Monday, and was down 0.4% on Tuesday.

Palm oil may fall to RM2,110 per tonne, as it has broken a support at RM2,155, according to Reuters market analyst for commodities and energy technicals Wang Tao.

In other related oils, the May soyoil contract on the Dalian Commodity Exchange lost 0.9%, and the Dalian May palm oil contract also declined 0.9%.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable .

Palm, soy and crude oil prices at 0531 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL MAY9 2078 -16.00 2066 2081 201
MY PALM OIL JUN9 2131 -11.00 2121 2137 4670
MY PALM OIL JUL9 2151 -10.00 2139 2155 6062
PALM OLEIN MAY9 4422 -42.00 4406 4452 39882
CHINA SOYOIL MAY9 5390 -48.00 5372 5422 67060
CBOT SOY OIL MAY9 28.71 -0.10 28.7 28.79 1470
INDIA PALM OIL APR9 534.10 +0.30 531.60 534.1 198
INDIA SOYOIL APR9 738.25 -0.50 738.2 738.25 190
NYMEX CRUDE MAY9 63.33 -0.07 63.25 63.60 23681

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in yuan per tonne
India soy oil in rupee per 10 kg
Crude in US dollars per barrel

(US$1 = RM4.1130)
(US$1 = 6.7086 Chinese yuan)
(US$1 = 69.4840 Indian rupees) 

Source from TheEdge

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