KUALA LUMPUR (June 19): Malaysian palm oil futures slumped more than 2% on Tuesday to their lowest in nearly two years, tracking weakness in related edible oils.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 1.8% at RM2,265 (US$566.82) per tonne at noon, after declining as much as 2.3% to its lowest since July 26, 2016 at RM2,253 earlier in the session.
Trading volumes stood at 38,727 lots of 25 tonnes each at the midday break.
"Palm market is down today tracking externals," said a Kuala Lumpur-based futures trader, referring to soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
The Chicago July soybean oil contract declined over 1%, in line with soybeans, over a deepening trade war between Washington and Beijing.
Palm oil prices track the performance of other edible oils, as they compete for a share in the global vegetable oils market.
In other related oils, the September soybean oil on China's Dalian Commodity Exchange dropped 1.8%, while the Dalian September palm oil contract plunged 4.5%.
Market players may also be trading cautiously ahead of export data, said another trader, referring to June 1-20 shipment data from cargo surveyors.
Malaysian palm oil shipments in the first half of June declined 7.2%-9.6% from a month earlier, according to AmSpec Agri Malaysia and Societe Generale de Surveillance.
Palm oil still targets its June 13 low of RM2,300 per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0455 GMT
|MY PALM OIL||JUL8||2262||-47.00||2256||2304||617|
|MY PALM OIL||AUG8||2262||-45.00||2252||2306||4963|
|MY PALM OIL||SEP8||2265||-42.00||2253||2306||15340|
|CHINA PALM OLEIN||SEP8||4650||-222.00||4630||4916||499388|
|CBOT SOY OIL||JUL8||29.25||-0.32||29.18||29.59||10974|
|INDIA PALM OIL||JUN8||634.10||-5.40||634.00||637.1||85|
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 = RM3.9960)
(US$1 = 68.0975 Indian rupees)
(US$1 = 6.4468 Chinese yuan)