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
|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|
|CBOT SOY OIL||JUL9||26.99||+0.21||26.79||27||6317|
|INDIA PALM OIL||MAY9||509.50||-1.30||506.00||512||484|
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)