Palm falls on weaker overnight U.S. soyoil, crude oil prices

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KUALA LUMPUR (Jan 16): Malaysian palm oil futures edged down on Wednesday, though remaining range-bound, tracking weakness in soyoil overnight on the U.S. 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 0.4% at 2,175 ringgit (US$529.45) a tonne at the close of trade.

Trading volumes stood at 31,538 lots of 25 tonnes each at the end of the trading day. 

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

U.S. soybean futures fell for the third time in four sessions on Tuesday, on worries the United States and China remain far apart in resolving a bitter trade dispute that has slashed U.S. 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. 

U.S. oil prices 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 fell 0.1%, while the Dalian January palm oil contract declined 0.5%.

Palm oil may fall into a range of 2,103-2,121 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
 Palm, soy and crude oil prices at 1051 GMT:

Contract Month Last Change Low High Volume
MY PALM OIL FEB9 2092 -7.00 2085 2096 392
MY PALM OIL MAR9 2137 -10.00 2132 2147 6286
MY PALM OIL APR9 2174 -9.00 2172 2185 12139
CHINA PALM OLEIN JAN9 4200 -22.00 3992 4200 556
CHINA SOYOIL JAN9 5170 +12.00 5168 5170 120
CBOT SOY OIL JAN9 28.33 +0.09 28.27 28.36 3784
INDIA PALM OIL JAN9 543.10 -0.90 541.90 545.2 297
INDIA SOYOIL JAN9 762 -4.00 762 765.5 2650
NYMEX CRUDE FEB9 51.88 -0.23 51.71 52.52 132825

 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 = 4.1080 ringgit)
(US$1 = 71.1730 Indian rupees)
(US$1 = 6.7589 Chinese yuan)