Palm falls for fourth session, tracking weakness in related oils

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KUALA LUMPUR (Dec 7): Malaysian palm oil futures extended falls into a fourth session on Thursday and hit their lowest in nearly five months, tracking weakness in related edible oils.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 0.4% at RM2,525 (US$618.72) a tonne at the midday break.

Earlier in the session, it dropped as much as 1.1% to its lowest since July 19 at RM2,506. It has shed about 3% so far this week, heading for a sixth straight weekly fall, and declined about 10% since Nov. 1.

Traded volumes stood at 11,960 lots of 25 tonnes each at Thursday noon.

"We're seeing some spillover from the overnight drop in soyoil on the Chicago Board of Trade," said a Kuala Lumpur-based trader.

Heavy losses on Dalian may extend palm's downside, said another trader.

Palm oil prices are affected by movements in other edible oils as they compete for a share of the global vegetable oils market.

The January soybean oil contract on the Chicago Board of Trade fell 1% in the previous session, in line with a broad downturn seen in many commodities, as the US dollar strengthened.

It was last down 0.03% at 0430 GMT on Thursday.

In other related oils, the January soybean oil contract on the Dalian Commodity Exchange fell 1.2%, while the Dalian January palm olein contract declined 1.3%.

Palm oil may test a support at RM2,519 per tonne, a break below which could cause a loss to the next support at RM2,491, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 0433 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       DEC7     2440   +5.00    2435    2441      70
MY PALM OIL       JAN8     2497  -10.00    2478    2501     336
MY PALM OIL       FEB8     2525  -10.00    2506    2530    5950
CHINA PALM OLEIN  MAY8     5336  -68.00    5292    5388  292570
CHINA SOYOIL      MAY8     5920  -70.00    5876    5990  290058
CBOT SOY OIL      JAN8    33.16   +0.00   33.01   33.23    3376
INDIA PALM OIL    DEC7   574.00   -0.30  574.00   574.9      10
INDIA SOYOIL      DEC7        0   +0.00  0 0 0
NYMEX CRUDE       JAN8    56.17   +0.21   55.99   56.19   19502

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 = RM4.0810)
(US$1 = 64.5050 Indian rupees)
(US$1 = 6.6132 Chinese yuan)