Palm falls to one-week low, tracking weaker soyoil

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KUALA LUMPUR (March 24): Malaysian palm oil futures fell to their lowest in a week on Friday evening, tracking weaker performing related oils.

Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange slipped 0.6% at RM2,754 (US$622.65) a tonne at the end of the trading day. The contract earlier hit an intraday low of RM2,742, its weakest level since March 16.

Traded volumes stood at 35,912 lots of 25 tonnes each on Friday evening. Palm is down 1.7% for the week.

"Soybean oil is one factor, another thing is some are taking advantage of higher prices in the previous sessions to sell," said a Kuala Lumpur-based futures trader, referring to soyoil on the Chicago Board of Trade.

Palm had climbed to two-week highs on Wednesday before declining on Thursday and Friday.

Palm oil prices are affected by movements in other edible oils, as they compete for a share in the global vegetable oils market.

US soyoil declined in line with weaker performing soybeans on Friday, which fell as global supplies remained high despite the recent strong demand for US supplies.       

Soybean oil on the Chicago Board of Trade was down 1.1%, while the September soybean oil contract on the Dalian Commodity Exchange fell as much as 1.2%.

The September contract for palm olein on the Dalian Commodity Exchange dropped as much as 1.6%.

Palm oil could fall further to RM2,730 per tonne, according to analysis by a Reuters market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 1034 GMT

Contract          Month    Last  Change     Low   High   Volume
MY PALM OIL       APR7     2895  -38.00    2895   2928      682
MY PALM OIL       MAY7     2823  -15.00    2815   2836     4312
MY PALM OIL       JUN7     2755  -17.00    2742   2768    19871
CHINA PALM OLEIN  SEP7     5516  -92.00    5512   5578   445620
CHINA SOYOIL      SEP7     6362  -80.00    6352   6446   398264
CBOT SOY OIL      MAY7    32.86   -0.36   32.82  33.29     7832
INDIA PALM OIL    MAR7   532.70   -4.30  532.30  536.5      322
INDIA SOYOIL      APR7    645.9   -6.95   645.8    649    16850
NYMEX CRUDE       MAY7    48.02   +0.32   47.65  48.12    62325

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.4230)
(US$1 = 65.4025 Indian rupees)
(US$1 = 6.8833 Chinese yuan)