June 7, 2018 / 5:37 AM / 2 months ago

VEGOILS-Palm extends fall to 1-month low on weak demand outlook

    * Palm down for fourth straight session
    * Falls in Chicago soybeans weigh on mkt
    * Palm targets 2,364 ringgit/tonne - Techs

    By Mayank Bhardwaj
    NEW DELHI, June 7 (Reuters) - Malaysian palm oil futures extended falls into
a fourth session on Thursday and hit their lowest in one month on continued
concerns about weak demand outlook, while declines in Chicago soybeans weighed
on the market as well.
    The palm oil contract for August delivery on the Bursa Malaysia
Derivatives Exchange was down 0.5 percent at 2,382 ringgit ($599.55) a tonne at
the midday break.
    Trading volume stood at 11,863 lots of 25 tonnes.
    "Basically weak demand is causing prices to retreat," said a Kuala
Lumpur-based palm oil trader.
    Buying for Ramadan has fizzled out as most buyers have already stocked up
with the vegetable oil. 
    The Muslim holy month of Ramadan, which began in mid-May this year, is
marked by communal fasting and feasting that boosts consumption of vegetable
oils, including palm and soy, in the Middle East and across South and Southeast
Asia.
    "A weaker external market is also influencing Malaysian palm oil prices,"
said another Kuala Lumpur-based trader.
    On Thursday, the most active soybean futures on the Chicago Board Of Trade
 was 0.1 percent lower at $9.93 a bushel, after hitting its weakest since
April 4 at $9.92 a bushel, as uncertainty about the United States' trade
relationships with China, the world's top soybean importer, weighed on the
market.
    Palm oil is influenced by movements in rival edible oils and oilseeds as
they compete for a share in the global vegetable oils market.
    Malaysia's palm oil exports in May dropped 8.8 percent from April to around
1.2 million tonnes, independent inspection company AmSpec Agri Malaysia said
last week.
    Cargo surveyor Societe Generale de Surveillance (SGS) said the country's May
palm oil exports fell 9.9 percent from a month ago.
    In Indonesia, the world's top palm oil exporter, shipments of palm and palm
kernel oils plunged 13.6 percent in April, data from the Indonesia Palm Oil
Association showed.
    Palm oil still targets 2,364 ringgit, as it has broken a support
at 2,408 ringgit per tonne, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    
  Palm, soy and crude oil prices at 0523 GMT
                                                                                
 Contract             Month         Last    Change       Low      High    Volume
 MY PALM OIL          JUN8          2382    -14.00      2375      2388        58
 MY PALM OIL          JUL8          2382    -12.00      2372      2388     1,299
 MY PALM OIL          AUG8          2382    -12.00      2375      2390     5,580
 CHINA PALM OLEIN     SEP8          5014    -20.00      5004      5030   124,040
 CHINA SOYOIL         SEP8          5790    -32.00      5778      5820   225,004
 CBOT SOY OIL         JUL8         30.65      0.50     30.62     30.68     2,644
 INDIA PALM OIL       JUN8        645.40      0.50    643.10    645.90        52
 INDIA SOYOIL         JUN8        751.50      0.80    749.50    751.50       620
 NYMEX CRUDE          JUL8         65.15      0.42     64.85     65.25    33,614
                                                                                
  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 = 3.9730 ringgit)
($1 = 67.08 Indian rupees)
($1 = 6.39 Chinese yuan)

 (Reporting by Mayank Bhardwaj; Editing by Subhranshu Sahu)
  
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