KUALA LUMPUR (Sept 7): Malaysian palm oil futures charted a third consecutive session of losses on Friday evening, tracking weaker edible oils and on expectation that production will rise in the coming weeks, traders said.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 0.5% at 2,266 ringgit (US$546.88) a tonne at the close of trade.
It earlier fell to 2,258 ringgit, its lowest in nearly a week. Palm, however, is up 0.8% this week.
Trading volumes stood at 29,852 lots of 25 tonnes each at the end of the trading day.
Malaysian markets will be closed on Monday and Tuesday for national holidays.
"The market is down on production expectations," one Kuala Lumpur-based trader said.
Another futures trader said the market was also weighed down by weakness in palm olein on China's Dalian Commodity Exchange, adding that the long holiday weekend could cap the upside.
Palm oil production is widely expected to rise in the coming months, in line with seasonal trends. A Reuters poll has forecast August output is likely to have risen 9.9% to 1.65 million tonnes, contributing to higher inventory levels, which are seen hitting a six-month top at 2.41 million tonnes.
Official data from the Malaysian Palm Oil Board is scheduled for release on Sept 12.
Palm oil could break support at 2,274 ringgit a tonne and fall towards the next support at 2,245 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
The Chicago September soybean oil contract was down 0.2%, while the January soybean oil contract on China's Dalian Commodity Exchange edged up 0.1%.
In related oils, the Dalian January palm oil contract was down 0.7%.
Palm oil prices are affected by movements of other edible oils that compete in the global vegetable oils market.
Palm, soy and crude oil prices at 1047 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP8 2202 -11.00 2201 2218 34
MY PALM OIL OCT8 2244 -11.00 2239 2251 1199
MY PALM OIL NOV8 2264 -11.00 2258 2274 13397
CHINA PALM OLEIN JAN9 4900 -36.00 4872 4972 462816
CHINA SOYOIL JAN9 5872 +8.00 5832 5912 469758
CBOT SOY OIL SEP8 28.1 -0.06 28.1 28.1 145
INDIA PALM OIL SEP8 606.00 -0.50 603.60 606.5 563
INDIA SOYOIL SEP8 744.5 -1.45 742.7 745 6560
NYMEX CRUDE OCT8 67.76 -0.01 67.63 68.08 90525
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
(US$1 = 4.1435 ringgit)
(US$1 = 71.7000 Indian rupees)
(US$1 = 6.8394 Chinese yuan)