Palm slips on overnight soyoil fall, weak export data

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KUALA LUMPUR (July 31): Malaysian palm oil futures slipped in early trade on Tuesday, tracking overnight losses in US soyoil and on weak export data from a cargo surveyor.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.5% at the midday break at RM2,181 (US$537.46) a tonne.

Palm oil has declined 6.2% so far this year, in what could be its sharpest monthly drop since November.

Trading volume stood at 16,415 lots of 25 tonnes each at Tuesday noon.

"Palm opened lower mirroring the overnight drop in rival soyoil," according to a Kuala Lumpur-based futures trader, adding that the market was also cautious ahead of July export data from another cargo surveyor.

Palm oil exports in July fell 3.9% on a monthly basis, inspection company AmSpec Agri Malaysia reported on Tuesday.

Cargo surveyor Societe Generale de Surveillance is scheduled to release its July export data after 0700 GMT.

In other related oils, the Chicago December soybean oil contract declined 0.6% on Monday, but was up 0.1% on Tuesday.  

The September soybean oil contract on China's Dalian Commodity Exchange rose 0.4% and the Dalian September palm oil contract traded flat.

Palm oil prices are influenced by the performance of other edible oils as they compete for a share in the global vegetable oils market.

Palm oil is biased to drop to a support at RM2,149 per tonne, as it failed to break a resistance at RM2,218, according to Reuters market analyst for commodities and energy technicals Wang Tao.

Palm, soy and crude oil prices at 0450 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       AUG8     2115  -14.00    2115    2122     123
MY PALM OIL       SEP8     2150  -21.00    2150    2175    2274
MY PALM OIL       OCT8     2181  -11.00    2181    2197    5688
CHINA PALM OLEIN  JAN9     4858  +12.00    4838    4868  159304
CHINA SOYOIL      JAN9     5816  +18.00    5808    5836  180828
CBOT SOY OIL      DEC8    28.88   +0.03   28.86   28.95    1096
INDIA PALM OIL    JUL8   617.90   -0.20  617.90     618      79
INDIA SOYOIL      AUG8      742   -1.10  740.25   742.5     840
NYMEX CRUDE       SEP8    69.82   -0.31   69.55   70.22   29475

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 = RM4.0580)
(US$1 = 68.6125 Indian rupees)
(US$1 = 6.8204 Chinese yuan)