MUMBAI (June 4): Malaysian palm oil futures fell more than 1% on Monday as traders were expecting build up in stockpiles due to sluggish export demand.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 1.31% at RM2,407 (US$606.30) a tonne by the close.
Trading volume stood at 45,918 lots of 25 tonnes.
"Demand is not picking up despite the recent correction. Buyers are waiting for a bigger fall," said a Kuala Lumpur-based palm oil trader said.
Malaysia's palm oil exports in May fell 8.8% from April to around 1.2 million tonnes, independent inspection company AmSpec Agri Malaysia said on Thursday.
Cargo surveyor Societe Generale de Surveillance (SGS) said the country's May palm oil exports fell 9.9% from a month ago.
In Indonesia, the world's top palm oil exporter, shipments of palm and palm kernel oils fell 13.6% in April, data from the Indonesia Palm Oil Association showed.
"MPOB (Malaysian Palm Oil Board) data could show an expansion in stocks at the end of May," said another Kuala Lumpur-based palm trader said.
The government body could release production, exports and stock numbers for May in next few days.
In related vegetable oils, the Chicago July soybean oil contract was down 0.22%, while September soybean oil on China's Dalian Commodity Exchange rose 0.48%.
Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1028 GMT
|MY PALM OIL||JUN8||2414||-22.00||2410||2440||575|
|MY PALM OIL||JUL8||2405||-31.00||2404||2451||5,948|
|MY PALM OIL||AUG8||2407||-32.00||2407||2457||15,456|
|CHINA PALM OLEIN||SEP8||5096||4.00||5094||5148||331,338|
|CBOT SOY OIL||JUL8||31.12||-8.60||31.08||31.27||12,394|
|INDIA PALM OIL||JUN8||644.00||-8.60||642.90||650.90||825|
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 = RM3.9700)