Palm oil futures drop after soy falls on EPA’s biofuel notice

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KUALA LUMPUR (Sept 27): Palm oil for Dec. delivery drops as much as 1.1% to RM2,718/ton on Bursa Malaysia Derivatives before trading at RM2,730 by 11:11am in Kuala Lumpur.

* Futures -12% YTD

* Market went lower, tracking losses in Tuesday’s soybean oil trade due the impact of the EPA notice, says David Ng, derivatives specialist at Phillip Futures in Kuala Lumpur.

* NOTE: EPA Opens Door to Cutting Biodiesel, Renewable Fuel Quotas

* Soybean oil for Dec. delivery on Chicago Board of Trade +0.1% to 33.48c/lb, -1.7% Tuesday

** Nov. soybeans -0.1% to $9.63/bu, -0.8% Tuesday

* Soybean oil’s premium over palm oil ~$92/ton vs avg ~$112 over past year: data compiled by Bloomberg

* Palm oil’s premium over gasoil at ~$100/ton vs avg ~$167 over past year: data compiled by Bloomberg

* Jan. refined palm oil on Dalian Commodity Exchange +0.4% to 5,626 yuan/ton; Jan. soybean oil -0.5% to 6,152 yuan/ton