Palm extends falls on soyoil weakness

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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

Contract Month Last Change Low High Volume
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
CHINA SOYOIL JAN9 5916 +12.00 5892 5932 374912
CBOT SOY OIL SEP8 27.73 +0.00 0 0 200
INDIA PALM OIL SEP8 0.00 +0.00 0.00 0 0
INDIA SOYOIL SEP8 0 +0.00 0 0 0
NYMEX CRUDE OCT8 69.85 +0.60 69.76 70.14 40663

  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)