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)