KUALA LUMPUR (Aug 10): Malaysian palm oil futures were down on Friday afternoon on caution ahead of official data releases at the midday break and on weaker related edible oils.
Industry regulator the Malaysian Palm Oil Board (MPOB) reported a 1.3% monthly rise in July inventory levels to 2.21 million tonnes.
The data also showed that production rose 12.8% to 1.5 million tonnes and exports were up 6.8% at 1.21 million tonnes from the previous month.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.5% at RM2,234 (US$547.68) a tonne at noon.
The market, however, is on track for its strongest weekly gain in three, and is up 1.7% on week so far.
Trading volumes stood at 9,550 lots of 25 tonnes each.
"Trading is cautious ahead of July MPOB figures," said a futures trader in Kuala Lumpur, adding that weaker related vegetable oils also weighed down on palm.
A Thomson Reuters survey had forecast palm oil end-July stockpiles to rise 7% to a five month high of 2.34 million tonnes.
Meanwhile, Malaysian palm oil shipments during August 1-10 rose 7.4% from the corresponding period last month, reported inspection company AmSpec Agri Malaysia on Friday.
"We're not really seeing strong buying, but the data could give underlying support to the market," said another trader of the AmSpec data.
In other related oils, the Chicago December soybean oil contract slightly rose 0.1%, but the January soybean oil contract on China's Dalian Commodity Exchange declined 0.4%.
The Dalian January palm oil contract was also down 0.3%.
Palm oil prices are impacted by movements of other edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0529 GMT
|MY PALM OIL||AUG8||0||+0.00||0||0||0|
|MY PALM OIL||SEP8||2222||-11.00||2216||2225||276|
|MY PALM OIL||OCT8||2234||-12.00||2225||2240||4811|
|CHINA PALM OLEIN||JAN9||4930||-16.00||4924||4950||89524|
|CBOT SOY OIL||DEC8||28.92||+0.00||28.77||28.98||3679|
|INDIA PALM OIL||AUG8||596.30||+2.80||593.20||596.4||501|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = RM4.0790)
(US$1 = 68.9700 Indian rupees)
(US$1 = 6.8521 Chinese yuan)