July 14, 2017 / 5:05 AM / 7 days ago

VEGOILS-Palm hits one-week low on concerns over rising output

3 Min Read

    * Palm falls to 2,532 rgt/T, lowest since July 5
    * Market may further decline this month when output rises -
Trader
    * Palm may slide into 2,506-2,517 rgt/T range - Technicals

    By Emily Chow
    KUALA LUMPUR, July 14 (Reuters) - Malaysian palm oil futures
were in line for a fourth consecutive session of declines on
Friday, hitting their lowest in over a week, as forecasts of
rising production pulled down prices, said traders. 
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange fell 0.7
percent to 2,538 ringgit ($591.19) at the midday break. Earlier
in the session, it hit 2,532 ringgit, its lowest since July 5. 
    The market is also down 0.6 percent for the week so far.
Traded volumes stood at 21,194 lots of 25 tonnes each by Friday
noon.
    "This whole month will be a production play on prices," said
a futures trader from Kuala Lumpur. "The market is likely to
come down, especially if production picks up this month."
    Palm oil output in Malaysia had declined in June as workers
went on leave during Ramadan and Eid-al-Fitr festivities.
However, production is seen to recover from July onwards in line
with seasonal trend. MYPOMP-CPOTT
    The market was also weighed down by weaker performing edible
oils on Friday morning, said another trader, referring to soyoil
on the Chicago Board of Trade (CBOT) and related oils on China's
Dalian Commodity Exchange, as they compete for a share in the
global vegetable oils market. 
    The December soybean oil contract on the Chicago
Board of Trade fell as much as 0.8 percent, while the September
soybean oil on the Dalian Commodity Exchange slipped up
to 1.5 percent.
    In other related oils, the September palm olein
dropped as much as 1.7 percent.
    The palm oil September contract may slide into a range of
2,506-2,517 ringgit per tonne, according to Reuters market
analyst for commodities and energy technicals Wang Tao.
  
    
  Palm, soy and crude oil prices at 0437 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       JUL7        0   +0.00       0      0        0
 MY PALM OIL       AUG7     2590  -20.00    2585   2593      611
 MY PALM OIL       SEP7     2538  -19.00    2532   2540    10970
 CHINA PALM OLEIN  SEP7     5374  -92.00    5356   5450   301676
 CHINA SOYOIL      SEP7     6028  -82.00    6018   6094   257614
 CBOT SOY OIL      DEC7    33.45   -0.15   33.24  33.48     4181
 INDIA PALM OIL    JUL7   478.10   -1.60  478.00  479.3      111
 INDIA SOYOIL      JUL7        0   +0.00       0      0        0
 NYMEX CRUDE       AUG7    45.98   -0.10   45.96  46.12    10742
 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
 
($1 = 4.2930 ringgit)
($1 = 64.4550 Indian rupees)
($1 = 6.7815 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 

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