Palm snaps winning streak on overnight CBOT soyoil fall

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KUALA LUMPUR (Aug 9): Malaysian palm oil futures ended down on Thursday, snapping a four-session winning streak, on losses overnight in soyoil on the Chicago Board of Trade (CBOT) and as traders turned cautious, ahead of a slew of data releases.

Official July data for Malaysia's palm oil inventories, production and exports is scheduled for release by the Malaysian Palm Oil Board (MPOB) after 0400 GMT on Friday.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.5% at 2,246 ringgit (US$551.30) a tonne at the end of the trading day.

The market climbed to a one-month high in its previous trading session and is up 2.3% for the week so far, its sharpest weekly gain since mid May.

Trading volumes stood at 38,631 lots of 25 tonnes each in the evening.

"The overnight drop in soyoil caused lower palm oil prices.

The market is also cautious ahead of the July supply and demand report from MPOB due tomorrow," said a futures trader in Kuala Lumpur.

Export data from cargo surveyors Societe Generale de Surveillance and AmSpec Agri Malaysia will also be reported on Friday, after 0300 GMT.

A Thomson Reuters survey forecasts palm oil end-July stockpiles to rise 7% to 2.34 million tonnes, while production is seen up 15.9% to 1.54 million tonnes.

Meanwhile, exports are also forecast to gain 0.9% to 1.14 million tonnes.

In other related oils, the Chicago December soybean oil contract fell 0.6% in its previous trading session, but was last up 0.03% on Thursday.

Meanwhile, the January soybean oil contract on China's Dalian Commodity Exchange was up 0.6%, and the Dalian January palm oil contract up 0.5%.

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

Palm, soy and crude oil prices at 1110 GMT

Contract Month Last Change Low High Volume
MY PALM OIL AUG8 0 -6.00 0 0 0
MY PALM OIL SEP8 2229 -6.00 2227 2240 1049
MY PALM OIL OCT8 2243 -12.00 2241 2257 13395
CHINA PALM OLEIN JAN9 4948 +26.00 4924 4970 223022
CHINA SOYOIL JAN9 5914 +34.00 5872 5930 394270
CBOT SOY OIL DEC8 28.93 +0.00 28.82 29.07 5343
INDIA PALM OIL AUG8 591.70 -3.40 590.40 595 467
INDIA SOYOIL AUG8 733 -3.15 732.6 736.95 3310
NYMEX CRUDE SEP8 66.98 +0.04 66.49 67.19 131818

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 = 4.0740 ringgit)
(US$1 = 68.6800 Indian rupees)
(US$1 = 6.8174 Chinese yuan)