Palm falls on higher than forecast stockpiles data

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KUALA LUMPUR (Feb 10): Malaysian palm oil futures fell on Friday, ending three sessions of gains and dragged down by higher than forecast inventory data from the Malaysian Palm Oil Board (MPOB).

Palm was up earlier in the day, touching its highest in over two weeks on expectations of low inventory numbers, ahead of the data release.

Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange closed down 0.9% at 3,071 ringgit (US$691.36) a tonne. It earlier hit 3,135 ringgit, its highest since Jan 25. 

Traded volumes totalled 54,851 lots of 25 tonnes each.

"We had expected stocks to drop more to around 1.45 million tonnes... so traders are liquidating their positions," said a futures trader in Kuala Lumpur.

Palm oil inventories in Malaysia, the world's second largest producer of the tropical oil, fell 7.6% to a five-month low of 1.54 million tonnes at end-January, the MPOB data showed.

However, that was weaker than market expectations for a 10.7% drop to 1.49 million tonnes.

Exports rose 1.2% to 1.28 million tonnes, while output declined more than forecast due to flooding from monsoon rains and fewer harvesting days in January, because of the Lunar New Year holiday.

In other related edible oils, the March soybean oil contract on the Chicago Board of Trade was down 0.1%, while the May soybean oil contract on the Dalian Commodity Exchange rose 0.7%.

The May contract for Dalian palm olein gained 1.1%.


Palm, soy and crude oil prices at 1039 GMT

Contract Month Last Change Low High Volume
MY PALM OIL FEB7 3269 -33.00 3265 3335 434
MY PALM OIL MAR7 3154 -35.00 3154 3228 3631
MY PALM OIL APR7 3070 -27.00 3068 3135 23351
CHINA PALM OLEIN MAY7 6284 +64.00 6178 6288 486388
CHINA SOYOIL MAY7 6956 +46.00 6874 6958 332846
CBOT SOY OIL MAR7 34.64 -0.03 34.61 34.96 6723
INDIA PALM OIL FEB7 575.50 -6.60 569.50 585.6 2095
INDIA SOYOIL FEB7 703.1 -3.05 702.9 711 6640
NYMEX CRUDE MAR7 53.54 +0.54 52.90 53.60 77262

 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 = 4.4420 ringgit)
(US$1 = 66.8350 Indian rupees)
(US$1 = 6.8790 Chinese yuan)