Reuters logo
VEGOILS-Palm falls nearly 2 pct, tracking weakness in related oils
September 28, 2017 / 5:06 AM / in 22 days

VEGOILS-Palm falls nearly 2 pct, tracking weakness in related oils

    * Palm falls nearly 2 pct, its sharpest drop in nearly 2
weeks
    * Dalian palm olein, CBOT soyoil declines weigh on palm -
Trader

    By Emily Chow
    KUALA LUMPUR, Sept 28 (Reuters) - Malaysian palm oil futures
fell sharply in early trade on Thursday, tracking weakness in
rival edible oilseeds and set for a second straight day of
losses.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange fell 1.8
percent to 2,698 ringgit ($637.83) a tonne at the midday break,
its sharpest decline since Sept. 18. 
    Traded volumes stood at 26,797 lots of 25 tonnes each at
noon.
    "The heavy drop in China palm olein and weakness in rival
oilseed soy dampened market sentiment," said a Kuala Lumpur
based futures trader, referring to palm olein on China's Dalian
Commodity Exchange and soyoil on the U.S.
Chicago Board of Trade.
    China soybean oil futures fell over 2 percent on Thursday,
reaching their lowest level in three months, following a drop in
global prices and amid ongoing pressure from large stocks.

    A palm oil trader in Kuala Lumpur said Dalian's palm olein
decline could be due to profit-taking ahead of a week-long long
holiday. China's announcement on Monday that it would start
acutioning soybeans its from state reserves could also weigh on
trading sentiment, said traders.
    Palm oil prices are affected by the performance of related
edible oils such as soy, as they compete for a share of the
global vegetable oils market. 
    Buyers would usually switch to soyoil if its spread with
palm oil narrows, as it is perceived to be of better quality.
    The December soybean oil contract on the Chicago
Board of Trade was down 0.4 percent, while the January soybean
oil contract on the Dalian Commodity Exchange fell 1.5
percent. 
    In other related oils, the January palm olein contract
 dropped as much as 2 percent.
    
 Palm, soy and crude oil prices at 0437 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       OCT7     2730   -29.00    2707   2730      28
 MY PALM OIL       NOV7     2696   -48.00    2694   2710    1794
 MY PALM OIL       DEC7     2698   -49.00    2696   2714   10654
 CHINA PALM OLEIN  JAN8     5526  -114.00    5450   5642  664468
 CHINA SOYOIL      JAN8     6080   -94.00    6026   6164  375846
 CBOT SOY OIL      DEC7     33.1    -0.13   33.03  33.26    5011
 INDIA PALM OIL    SEP7   547.50    +0.40  546.50  547.7      19
 INDIA SOYOIL      OCT7        0    +0.00       0      0       0
 NYMEX CRUDE       NOV7    51.99    -0.15   51.94  52.13   14404
 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 = 4.2300 ringgit)
($1 = 65.8100 Indian rupees)
($1 = 6.6565 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Richard Pullin)
  
 
 

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below