KUALA LUMPUR (Sept 12): Malaysian palm oil futures declined for a fourth straight session on Wednesday, tracking weakness in soyoil and on caution before the release of Malaysian Palm Oil Board (MPOB) data for August.
Palm oil stockpiles in August rose 12.4% from a month earlier to 2.49 million tonnes, while production gained 7.9% to 1.62 million tonnes, data released by the industry regulator during the midday break showed. However, exports fell 8.1% to 1.1 million tonnes.
A Thomson Reuters poll had forecast August output to rise 9.9% to 1.65 million tonnes, raising inventory levels to a six-month top of 2.41 million tonnes.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 0.1% at 2,263 ringgit (US$545.70) a tonne at midday break.
Earlier in the session, it fell to the lowest level since Sept 3 at 2,252 ringgit.
Trading volumes stood at 11,843 lots of 25 tonnes each at noon.
"Palm oil futures fell, mirroring the overnight drop in soyoil," said a Kuala Lumpur-based trader. "Trading was also cautious ahead of the MPOB report."
Palm oil may fall to 2,245 ringgit per tonne, as it has broken a support at 2,274 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
The Chicago September soybean oil contract declined 1.1% on Tuesday as export concerns, highlighted by a fresh cancellation of a deal for U.S. supplies, weighed on the market. It was trading flat at 0443 GMT.
Meanwhile, the January soybean oil contract on China's Dalian Commodity Exchange edged up 0.2%, while the Dalian January palm oil contract was 0.04% higher.
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 0443 GMT
|MY PALM OIL||SEP8||0||+0.00||0||0||45|
|MY PALM OIL||OCT8||2243||-1.00||2234||2243||809|
|MY PALM OIL||NOV8||2263||-3.00||2252||2263||6314|
|CHINA PALM OLEIN||JAN9||4920||+2.00||4902||4936||240222|
|CBOT SOY OIL||SEP8||27.73||+0.00||0||0||200|
|INDIA PALM OIL||SEP8||0.00||+0.00||0.00||0||0|
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 = 4.1470 ringgit)
(US$1 = 72.8300 Indian rupees)
(US$1 = 6.8733 Chinese yuan)