Palm slips to one-week low on overnight soyoil weakness

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KUALA LUMPUR (Dec 24): Malaysian palm oil futures were in line to chart three straight sessions of losses on Monday after a fall at the midday break, tracking overnight losses in US soyoil and crude oil prices.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was down 0.65% at RM2,143 (US$512.43) a tonne at the midday break. It earlier fell to RM2,132, its weakest level since Dec 18.

Trading volumes stood at 6,721 lots of 25 tonnes each at the midday break.

"Friday's fall in rival oilseed and the energy front stoked a lower opening (for palm)," said a Kuala Lumpur-based futures trader, referring to soyoil on the Chicago Board of Trade and crude oil prices.

Oil prices on Friday had fallen to their lowest in over a year on the back of a global oversupply, despite planned production cuts by the Organization of the Petroleum Exporting Countries.

Palm prices are impacted by movements in crude oil, as it is used as feedstock to make biodiesel.

In other related oils, the Chicago January soybean oil contract dropped over 1% on Friday as favourable weather boosted soybean crop prospects in South America, overshadowing support from renewed Chinese buying of US supplies. It was last down 0.1% on Monday.

Palm oil prices have been impacted by changes in soyoil prices in recent sessions, as they compete for a share in the global vegetable oil market.

Meanwhile, the January soybean oil contract on the Dalian Commodity Exchange fell 1% and the Dalian January palm oil contract declined 1.3%.

Palm, soy and crude oil prices at 0433 GMT:

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       JAN9     2071  -32.00    2070    2103     117
MY PALM OIL       FEB9     2109  -13.00    2101    2115     947
MY PALM OIL       MAR9     2143  -14.00    2132    2146    3923
CHINA PALM OLEIN  JAN9     4140  -56.00    4136    4190   17526
CHINA SOYOIL      JAN9     5018  -52.00    5008    5052   24278
CBOT SOY OIL      JAN9    27.86   -0.03   27.79   27.97    2472
INDIA PALM OIL    DEC8     0.00   +0.00    0.00 0 0
INDIA SOYOIL      JAN9        0   +0.00 0 0 0
NYMEX CRUDE       FEB9    45.96   +0.37   45.35   46.24   41317

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 = RM4.1820)
(US$1 = 70.1260 Indian rupees)
(US$1 = 6.8983 Chinese yuan renminbi)