Palm in line for 3rd session of declines on weaker edible oils

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KUALA LUMPUR (Aug 29): Malaysian palm oil futures fell to their lowest levels in a week in early trade on Tuesday, pressured by weaker performances in related edible oils with traders taking profits ahead of a long public holiday weekend.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 0.7% at RM2,718 (US$637.06) at the midday break.

Earlier in the session it fell to RM2,713, its lowest levels since Aug 21. The market is in line for a third straight day of declines after climbing to a five-month high last week.

Traded volumes were comparatively thin at 13,264 lots of 25 tonnes each at noon.

"As the long holidays are coming, we're seeing some profit-taking, especially as Dalian and soybean oil are also down," said a futures trader from Kuala Lumpur, referring to soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.

The Bursa Malaysia Derivatives Exchange market will be closed for public holidays on Thursday and Friday.

The October soybean oil contract on the Chicago Board of Trade fell 0.4%, while January soybean oil on the Dalian Commodity Exchange dropped as much as 0.9%.

In related vegetable oils, the January palm olein contract on Dalian declined 1%.

Palm oil may drop to RM2,687 per tonne, as it failed to break a resistance at RM2,759, according to Reuters market analyst for commodities and energy technicals Wang Tao.

Palm, soy and crude oil prices at 0437 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       SEP7     2700  -23.00    2700    2711      30
MY PALM OIL       OCT7     2710  -23.00    2705    2726     645
MY PALM OIL       NOV7     2718  -20.00    2713    2735    7273
CHINA PALM OLEIN  JAN8     5496  -54.00    5490    5540  344754
CHINA SOYOIL      JAN8     6322  -58.00    6316    6374  256006
CBOT SOY OIL      DEC7    34.81   -0.17    34.8   35.03    1781
INDIA PALM OIL    AUG7   519.00   -0.90  519.00   519.1       4
INDIA SOYOIL      SEP7        0   +0.00       0 0 0
NYMEX CRUDE       OCT7    46.78   +0.21   46.68   46.88   22906

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 = RM4.2665)
(US$1 = 63.9550 Indian rupees)
(US$1 = 6.6080 Chinese yuan)