Palm falls on weaker overnight US soyoil, crude oil prices

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KUALA LUMPUR (Jan 16): Malaysian palm oil futures edged down at the midday break on Wednesday, after trading range-bound in the first half of the session, tracking weakness in overnight soyoil on the US Chicago Board of Trade (CBOT) and crude oil prices.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was down 0.2% at RM2,179 (US$529.91) a tonne at noon.

Trading volumes stood at 14,963 lots of 25 tonnes each at the midday break.

"Palm is down tracking overnight losses in the CBOT and lower crude oil," said a Kuala Lumpur-based trader.

US soybean futures fell for the third time in four sessions on Tuesday on worries that the United States and China remain far apart in resolving a bitter trade fight that has slashed US soy imports by the world's top buyer.

The Chicago March soybean oil contract was last up 0.3%.

Palm oil prices are impacted by price movements of soyoil, as they compete for a share in the global vegetable oil market.

The edible oil is also affected by crude oil prices, as it is used as feedstock to make biodiesel.

US oil prices had inched lower on Wednesday after gains of more 3% in the previous session, pressured by concerns over the outlook for the global economy.

In other related oils, the May soybean oil contract on the Dalian Commodity Exchange rose 0.1%, while the Dalian January palm oil contract declined 0.5%.

Palm oil may fall into a range of RM2,103-2,121 per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 0501 GMT:

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       FEB9     2094   -3.00    2088    2096     113
MY PALM OIL       MAR9     2137   -9.00    2135    2147    3685
MY PALM OIL       APR9     2179   -5.00    2174    2185    5935
CHINA PALM OLEIN  JAN9     4200  -22.00    3992    4200     556
CHINA SOYOIL      JAN9     5170  +12.00    5168    5170     120
CBOT SOY OIL      JAN9    28.32   +0.08   28.27   28.35    2149
INDIA PALM OIL    JAN9   543.10   -0.90  542.80   545.2      76
INDIA SOYOIL      JAN9      765   -1.00   764.3   765.5     560
NYMEX CRUDE       FEB9    52.10   -0.01   51.71   52.16   32141

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 = RM4.1120)
(US$1 = 71.0450 Indian rupees)
(US$1 = 6.7675 Chinese yuan)