Palm charts third day of losses on weak crude, soyoil

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KUALA LUMPUR (May 24): Malaysian palm oil futures fell for a third straight session on Friday evening, hitting a 1-1/2 week low, tracking weakness in overnight crude and U.S. soyoil prices.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.2% at 2,013 ringgit (US$480.77) per tonne at the close of trade.

Earlier in the session, it fell as much as 1.1% to 1,993 ringgit, its weakest level since May 14. Palm oil prices were down 4.1% for the week.

Palm oil may test a support at 1,967 ringgit per tonne, a break below which could open the way towards 1,857 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
    
"Palm is down, tracking the sharp drops in overnight CBOT and crude oil prices," said a Kuala Lumpur-based trader, referring to U.S. soyoil on the Chicago Board of Trade.

Crude oil plunged 4%-5% on Thursday, as trade tensions between the United States and China dampened the demand outlook.

Oil rose towards US$69 a barrel on Friday, but remained on track for its biggest weekly drop this year, due to rising inventories and concerns of an economic slowdown.

In related edible oils, the Chicago July soybean oil contract dropped 1.9% on Thursday, as the U.S. Department of Agriculture announced a US$14.5 billion direct payment programme that ties payment rates to the number of acres planted.

Soyoil prices were last up 0.8% on Friday.

Meanwhile, the September soyoil contract on the Dalian Commodity Exchange was down 0.5% and the Dalian September palm oil contract fell 0.6%.

Palm oil prices are affected by movements in soyoil, with which it competes for global market share.

Palm, soy and crude oil prices at 1059 GMT

Contract Month Last Change Low High Volume
MY PALM OIL JUN9 1974 +2.00 1960 1980 445
MY PALM OIL JUL9 2004 +2.00 1980 2008 3492
MY PALM OIL AUG9 2014 -3.00 1993 2018 13788
CHINA PALM OLEIN SEP9 4368 -26.00 4348 4380 356998
CHINA SOYOIL SEP9 5356 -26.00 5332 5368 264082
CBOT SOY OIL JUL9 26.99 +0.21 26.79 27 6317
INDIA PALM OIL MAY9 509.50 -1.30 506.00 512 484
INDIA SOYOIL JUN9 744.35 +2.75 740.5 745 5700
NYMEX CRUDE JUL9 58.53 +0.62 58.01 58.74 156620

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 = 4.1870 ringgit)
(US$1 = 69.5400 Indian rupees)
(US$1 = 6.8994 Chinese yuan)