Palm closes 2% down on weaker related oils

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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)