KUALA LUMPUR (Jan 19): Malaysian palm oil futures fell for a second consecutive session on Thursday, hit by weaker US soyoil and a failure to break the previous session's intraday high, dealers said, forecasting further range-bound trading, pending new leads.
Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange were down 0.6% at RM3,131 (US$704) a tonne at the end of the trading day.
Traded volumes stood at 41,828 lots of 25 tonnes each on Thursday evening.
"The market's technicals are not good, it couldn't break yesterday's high of RM3,175," said a trader from Kuala Lumpur.
"People could also be wanting to liquidate their position because of Trump," he said, referring to the US President-elect's inauguration on Friday and concerns about his policies.
Palm was down earlier in the day on the back of weaker US soy. Palm prices often track the movements of related edible oils as they compete for a share in the global vegetable oils market. The March soybean oil contract on the CBOT is down by 0.2%.
Despite the decline, palm is still near a more-than-four-year high on tight market supplies, as production levels are still reeling from the effects of the crop-damaging El Nino.
Traders and analysts expect output to remain slow until the second or even third quarter of the year.
Malaysian output for the year, however, is seen rising 12% to 19.4 million tonnes from 2016, as the trees recover from dry weather, according to the Malaysian Palm Oil Board.
In other related edible oils, the May soybean oil contract on the Dalian Commodity Exchange climbed 0.1%, while the May contract for Dalian palm olein declined 0.2%.
Palm, soy and crude oil prices at 1046 GMT
|MY PALM OIL||FEB7||3243||-2.00||3231||3254||487|
|MY PALM OIL||MAR7||3169||-16.00||3166||3203||7045|
|MY PALM OIL||APR7||3131||-19.00||3130||3171||21405|
|CHINA PALM OLEIN||MAY7||6306||-10.00||6268||6348||431558|
|CBOT SOY OIL||MAR7||35.53||-0.06||35.44||35.7||5886|
|INDIA PALM OIL||JAN7||592.50||-2.80||591.20||595.7||644|
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 = RM4.4470)
(US$1 = 68.1625 Indian rupees)
(US$1 = 6.8630 Chinese yuan)