KUALA LUMPUR (April 11): Malaysian palm oil futures edged down to their lowest in more than a week on Thursday evening, weighed down by expectations of rising production.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 0.7% at 2,154 ringgit (US$523.83) a tonne at the close of trade in its second session of declines.
The market earlier fell by up to 1% to 2,148 ringgit, its lowest level since April 2.
The market dropped as much as 2% in the previous session as official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.
The MPOB data showed end-stocks declined 4.6% to 2.92 million tonnes from February, while output rose 8.3% to 1.67 million tonnes on the month.
"Players are digesting April's supply and demand after Wednesday's selloff on higher-than-expected MPOB stocks," said a Kuala Lumpur-based trader.
"However, I think we are seeing a lower market on a higher April production outlook."
Meanwhile, Malaysian palm oil exports during the April 1-10 period rose from the corresponding period last month by 6.2% and 12.6%, according to Amspec Agri Malaysia and Intertek Testing Services respectively.
Cargo surveyor Societe Generale de Surveillance reported a 27.6% gain in exports in the same time period.
In other related oils, Chicago May soybean oil contract was down 0.3%, and the May soyoil contract on the Dalian Commodity Exchange slipped 0.4%.
Meanwhile, the Dalian May palm oil contract declined 0.6%.
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 1105 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR9 0 -16.00 0 0 0
MY PALM OIL MAY9 2112 -18.00 2104 2144 1656
MY PALM OIL JUN9 2155 -16.00 2148 2180 19595
CHINA PALM OLEIN MAY9 4462 -28.00 4440 4474 93772
CHINA SOYOIL MAY9 5434 -20.00 5430 5462 72840
CBOT SOY OIL MAY9 28.97 -0.10 28.95 29.06 3280
INDIA PALM OIL APR9 533.40 -2.40 532.00 536.9 361
INDIA SOYOIL APR9 740.6 -2.65 739.7 741.9 1530
NYMEX CRUDE MAY9 64.06 -0.55 63.87 64.49 139172
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 = 4.1120 ringgit)
(US$1 = 6.7142 Chinese yuan)
(US$1 = 68.8900 Indian rupees)