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
|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|
|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|
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)