May 13, 2019 / 6:08 AM / 2 months ago

VEGOILS-Palm in line for fourth day of fall on U.S.-China trade tension

    * Palm hits 5-1/2 month low of 1,960 rgt/T
    * Expectations of rising output also weighs on market -
trader
    * Palm oil may fall into 1,953-1,967 rgt/T range - techs

 (Updates with midday prices, quote)
    By Emily Chow
    KUALA LUMPUR, May 13 (Reuters) - Malaysian palm oil futures
fell to a five-and-a-half month low in early trade on Monday, in
line for a fourth consecutive day of decline, as concerns over
the U.S.-China trade war and expectations of rising output in
the coming months weighed on the market.
    Global stocks and commodities markets fell on Monday as the
United States and China appeared at a deadlock over trade
negotiations on Sunday, with Washington demanding promises of
concrete changes to Chinese law and Beijing saying it would not
swallow any "bitter fruit" that harmed its interests.
 
    Benchmark palm oil contract for July delivery on
the Bursa Malaysia Derivatives Exchange was last down 0.6% at
1,972 ringgit ($473.75) a tonne at Monday's midday break, after
losing 1.3% last week.
    The market earlier fell to 1,960 ringgit, its lowest levels
since November 27.
    "It looks like the market is heading lower due to the
(U.S.-China) trade tensions, and is partly down on expectations
of higher output in the coming months," said a Kuala
Lumpur-based trader. 
    "Malaysian palm production could rise from May onwards on a
seasonal basis," he said, but added that the occurrence of
Ramadan, the Muslim fasting month, could curb output as well.
    Ramadan, which began on May 5 this year, sees Muslims
worldwide fast from dawn to dusk. This slows down productivity
in oil palm estates, as many workers are from Muslim-majority
Indonesian and work in plantation estates is labour-intensive.
    Industry regulator from the Malaysian Palm Oil Board last
showed that production in April fell 1.4% from the previous
month to 1.65 million tonnes, while inventories fell 6.6% to
2.73 million tonnes.
    Palm oil may fall into a range of 1,953-1,967 ringgit per
tonne, said Reuters market analyst for commodities and energy
technicals Wang Tao.
    
    In related oils, the Chicago July soybean oil contract
 dropped 1.6%, while the May soyoil contract on the Dalian
Commodity Exchange traded flat.
    The Dalian May palm oil contract slipped 1%.
    Palm oil prices are affected by movements in soyoil, with
which it competes for global market share.    
                      
    Palm, soy and crude oil prices at 0539 GMT  
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY9        0   +0.00       0       0       0
 MY PALM OIL       JUN9     1940  -11.00    1930    1949     485
 MY PALM OIL       JUL9     1972  -11.00    1960    1979    6962
 CHINA PALM OLEIN  MAY9     4094  -40.00    4094    4206     130
 CHINA SOYOIL      MAY9        0   +0.00       0       0       0
 CBOT SOY OIL      JUL9    26.37   -0.42   26.36   26.63    4841
 INDIA PALM OIL    MAY9   518.00   -0.20  517.60   519.2      56
 INDIA SOYOIL      MAY9      745   +3.50   741.6   746.5    1820
 NYMEX CRUDE       JUN9    61.63   -0.03   61.21   61.82   50517
  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
 
    * For a table on Malaysian physical palm oil prices,
including refined oil, Reuters Terminal users can double click
on or type.
    * To view freight rates from Peninsula Malaysia/Sumatra to
China, India, Pakistan and Rotterdam, please key in
and press enter, or double click between the brackets. 
    * Reuters Terminal users can see cash and futures edible oil
prices by double clicking on the codes in the brackets: To go to
the next page in the same chain, hit F12. To go back, hit F11.
    
Vegetable oils                    --
Malaysian palm oil exports        --  
CBOT soyoil futures               --     
CBOT soybean futures              --      
Indian solvent                    -- 
Weekly Indian vegetable oils      --   
Dalian Commodity Exchange         --  
Dalian soyoil futures             --  
Dalian refined palm oil futures   --  
Zhengzhou rapeseed oil            --  
European edible oil prices/trades --
    
($1 = 4.1625 ringgit)
($1 = 70.1750 Indian rupees)
($1 = 6.8557 Chinese yuan)

    
 (Reporting by Emily Chow; editing by Uttaresh.V)
  
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