Palm in sharpest fall in 6 weeks on expectations for slower export growth

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KUALA LUMPUR (Jan 14): Malaysian palm oil futures saw its sharpest daily decline in six weeks on Monday, reversing earlier gains after the market turned bearish ahead of export data from cargo surveyors. 

The data, due on Tuesday, is expected to show slowing growth in exports for the Jan 1-15 period, compared to Jan 1-10 when they surged by around 50%, said a Kuala Lumpur-based trader. 

"It (preliminary data) suggests a slowdown in exports," she said. 

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed down 1.6% at 2,136 ringgit (US$521) a tonne, its lowest level since Jan 2.

Trading volumes totalled 39,215 lots of 25 tonnes each.

Malaysian palm oil exports rose by between 46%-52% between Jan 1-10, according to cargo surveyor data, supported by better demand from Europe.

Cargo surveyors are scheduled to release Jan 1-15 export data for Malaysia after 0300 GMT on Tuesday.  

In other related oils, the Chicago March soybean oil contract edged down 0.4%, while the May soybean oil contract on the Dalian Commodity Exchange rose 0.3%.

Meanwhile, the Dalian January palm oil contract dropped 6%.
           
 Palm, soy and crude oil prices at 1043 GMT:

Contract Month Last Change Low High Volume
MY PALM OIL JAN9 2100 +7.00 2100 2100 592
MY PALM OIL FEB9 2093 -30.00 2088 2134 1322
MY PALM OIL MAR9 2134 -37.00 2134 2183 15575
CHINA PALM OLEIN JAN9 4116 -262.00 4116 4400 98
CHINA SOYOIL JAN9 0 +0.00 0 0 0
CBOT SOY OIL JAN9 28.17 +0.00 0 0 0
INDIA PALM OIL JAN9 543.00 -2.70 542.40 549.8 679
INDIA SOYOIL JAN9 766.7 +3.15 766.05 771.5 3840
NYMEX CRUDE FEB9 50.59 -1.00 50.43 52.11 197564

 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 = 4.0970 ringgit)
(US$1 = 70.7520 Indian rupees)
(US$1 = 6.7658 Chinese yuan)