KUALA LUMPUR (Sept 6): Malaysian palm oil futures fell for a second straight session on Thursday, on bearish production and inventory forecasts for August, while weakness in related edible oils also weighed on the market.
Palm oil end-stocks in August likely gained 9% to a six-month high of 2.41 million tonnes and output was seen rising 9.9% to 1.65 million tonnes, a Reuters poll showed.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 0.5% at 2,279 ringgit (US$549.69) a tonne at midday break. It hit a two-month high of 2,303 ringgit in the previous session.
Trading volumes stood at 8,293 lots of 25 tonnes each at noon.
"All the polls ahead of official data release are bearish," said a Singapore-based futures trader, referring to the Reuters poll, as well as forecasts by industry analysts.
Another futures trader said the market also tracked overnight losses in soyoil on the Chicago Board of Trade.
The Chicago September soybean oil contract was flat around 0456 GMT on Thursday, after shedding 0.7% on in the previous session due to renewed concerns about the U.S.-China trade war.
U.S. President Donald Trump said on Wednesday the United States was not yet ready to come to an agreement over trade disputes with China, but that talks would continue.
In other related oils, the January soybean oil contract on China's Dalian Commodity Exchange fell 0.3%, while the Dalian January palm oil contract was down 0.4%.
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 0456 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP8 2223 -16.00 2223 2233 2
MY PALM OIL OCT8 2257 -13.00 2256 2267 348
MY PALM OIL NOV8 2279 -12.00 2278 2290 4281
CHINA PALM OLEIN JAN9 4926 -22.00 4924 4948 186806
CHINA SOYOIL JAN9 5856 -16.00 5850 5882 172016
CBOT SOY OIL SEP8 28.18 +0.00 0 0 137
INDIA PALM OIL SEP8 604.70 +1.60 602.00 604.7 79
INDIA SOYOIL SEP8 743 +0.15 741 743.5 1080
NYMEX CRUDE OCT8 68.64 -0.08 68.41 68.69 23641
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 = 4.1460 ringgit)
(US$1 = 71.8200 Indian rupees)
(US$1 = 6.8358 Chinese yuan)