KUALA LUMPUR (May 23): Malaysian palm oil futures fell 2% at the close of trade on Thursday, hitting their lowest level in a week as they tracked weakness in related edible oils.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed 2% down at 2,016 ringgit (US$481.03) per tonne at the end of the trading day, its sharpest daily decline in three weeks and its second consecutive day of losses.
It earlier fell to 2,012 ringgit, its weakest since May 14.
"The market is weighed by external market weakness, all related commodities are down," said a Kuala Lumpur-based trader, referring to prices of crude oil and edible oils such as soyoil.
Palm oil may test a support at 2,034 ringgit per tonne, and a break below that could cause losses to 1,967 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related edible oils, the Chicago July soybean oil contract eased 0.7%, while the September soyoil contract on the Dalian Commodity Exchange was down 1.4%.
The Dalian September palm oil contract fell 1.6%.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
Crude oil prices also fell, extending losses from the previous session, amid surging U.S. inventories as low refinery runs and trade tensions weighed on the demand outlook.
Palm, soy and crude oil prices at 1041 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN9 1974 -34.00 1974 1990 244
MY PALM OIL JUL9 2001 -39.00 1998 2024 3232
MY PALM OIL AUG9 2017 -41.00 2012 2040 15476
CHINA PALM OLEIN SEP9 4366 -72.00 4364 4434 417314
CHINA SOYOIL SEP9 5350 -78.00 5348 5422 372194
CBOT SOY OIL JUL9 27.12 -0.19 27.06 27.31 5050
INDIA PALM OIL MAY9 511.00 -3.00 510.50 513 315
INDIA SOYOIL JUN9 741.35 -0.30 740.25 742.5 2770
NYMEX CRUDE JUL9 60.36 -1.06 60.26 61.41 167772
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 = 4.1910 ringgit)
(US$1 = 69.9750 Indian rupees)
(US$1 = 6.9180 Chinese yuan)