Palm falls over 1%, tracking soyoil decline

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KUALA LUMPUR (April 8): Malaysian palm oil futures retreated from a six-week top on Monday evening, falling over 1% to snap five sessions of gains, tracking weaker soybean oil prices on the U.S. Chicago Board of Trade and in a technical correction. 

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1.1% at 2,200 ringgit (US$537.24) a tonne at the close of trade. 

In the previous session, palm climbed to 2,235 ringgit, its highest since Feb 25. 

"Soybean oil dropped this afternoon, and we saw a healthy correction," said a Kuala Lumpur-based futures trader.

Another trader said earlier in the day the market was bullish in the medium-term, ahead of official data from the Malaysian Palm Oil Board which is forecast to show a decline in March-end stocks. 

Malaysia's palm oil stockpiles in March are likely to have dropped by 6.4% from February to 2.85 million tonnes, its lowest in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains.

The Malaysian Palm Oil Board is scheduled to release March data on Wednesday.

In other related oils, Chicago May soybean oil contract was down 0.7%, and the May soyoil contract on the Dalian Commodity Exchange rose 0.2%. 

Meanwhile, the Dalian May palm oil contract gained 0.5%.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market. 
 Palm, soy and crude oil prices at 1106 GMT

 Contract          Month    Last  Change     Low   High  Volume
 MY PALM OIL       APR9     2151  -18.00    2145   2151      30
 MY PALM OIL       MAY9     2185  -18.00    2179   2203    1551
 MY PALM OIL       JUN9     2201  -24.00    2196   2225   17541
 CHINA PALM OLEIN  MAY9     4452  +20.00    4446   4516  172856
 CHINA SOYOIL      MAY9     5446   +8.00    5432   5474   63716
 CBOT SOY OIL      MAY9    28.96   -0.19   28.93  29.15    5317
 INDIA PALM OIL    APR9   546.80   -1.50  545.50  554.8    1054
 INDIA SOYOIL      APR9   748.85   +3.95   743.5  750.5    9290
 NYMEX CRUDE       MAY9    63.40   +0.32   63.24  63.53  106736

 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 = 4.0950 ringgit)
(US$1 = 6.7183 Chinese yuan)
(US$1 = 69.6330 Indian rupees)