April 23, 2019 / 11:07 AM / 3 months ago

VEGOILS-Palm hits one-week low as high stocks worries persist

    * Market charts second day of losses
    * April output expected to see monthly gains - trader
    * Palm oil biased to fall towards 2,110 rgt/T - techs

 (Updates with closing prices)
    By Emily Chow
    KUALA LUMPUR, April 23 (Reuters) - Malaysian palm oil
futures fell to their lowest in a week on Tuesday, their second
straight day of losses as concerns persisted over high inventory
levels in the world's second largest producer. 
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange closed down 0.1
percent at 2,170 ringgit ($526.06) a tonne, after earlier
hitting 2,152 ringgit, its lowest since April 16. 
    Palm oil is biased towards breaking support at 2,155 ringgit
per tonne and falling towards next support at 2,110 ringgit,
following its failure to break a resistance at 2,227 ringgit,
said Wang Tao, a Reuters market analyst for commodities and
energy technicals.
    
    
    "Production is not coming down, and demand has not been so
great. There is a worry that end-stocks are not reducing," said
a futures trader in Kuala Lumpur. 
    He added that palm oil production throughout Malaysia so far
this month was showing a monthly gain of 2-5 percent. 
    Higher output levels would contribute towards a rise in
stockpiles, which last year hit their highest in at least 18
years. MYPOMS-TPO
    Inventories last declined 4.6 percent to 2.92 million tonnes
at the end of March, while production rose to 1.67 million
tonnes, up 8.3 percent from February.
    Data from cargo surveyors Societe Generale de Surveillance
and Intertek Testing Services showed export gains of 1.5-2.2
percent for April 1-20.
    Independent inspection company AmSpec Agri Malaysia,
however, reported a 1.8 percent drop for the same period.

    In other related oils, the Chicago May soybean oil contract
 fell 0.1 percent, and the May soyoil contract on the
Dalian Commodity Exchange was down 0.2 percent. 
    Meanwhile, the Dalian May palm oil contract declined
1.1 percent.
    Palm oil prices are affected by movements in soyoil, as they
compete for a share in the global vegetable oil market. 
        
    Palm, soy and crude oil prices at 1052 GMT  
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY9     2075  -11.00    2066    2080     183
 MY PALM OIL       JUN9     2152   -2.00    2133    2154    5466
 MY PALM OIL       JUL9     2170   -2.00    2152    2174   14952
 CHINA PALM OLEIN  MAY9     4358  -50.00    4338    4396   39986
 CHINA SOYOIL      MAY9     5330  -12.00    5304    5354   40922
 CBOT SOY OIL      MAY9    28.67   -0.03   28.54   28.75    4803
 INDIA PALM OIL    APR9   539.70   -2.40  536.50     541     521
 INDIA SOYOIL      MAY9      739   +2.70  734.15   739.8   16070
 NYMEX CRUDE       JUN9    65.99   +0.44   65.71   66.19  124304
  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 = 4.1250 ringgit)
($1 = 6.7126 Chinese yuan)
($1 = 69.7050 Indian rupees)


    
 (Reporting by Emily Chow; Editing by Uttaresh.V and Mark
Potter)
  
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