Palm falls as surveyor data shows Malaysia exports grew slower than expected
KUALA LUMPUR (Jan 31): Malaysian palm oil futures fell on Thursday, after a cargo surveyor data showed exports grew slower than expected in January.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange dropped 0.4% to RM2,294 (US$561.57) a tonne at the midday break.
Trading volumes stood at 10,013 lots of 25 tonnes each.
“That should limit any big sell-offs,” the trader said.
Cargo surveyor Intertek Testing Services said on Thursday exports of Malaysian palm oil products for January rose 14.7% while independent inspection company AmSpec Agri Malaysia reported a 15.5% increase.
The ringgit strengthened by 0.5% to 4.0840 to the dollar.
The Malaysian markets will be closed on Feb 1 for a state holiday and Feb 5-6 for the Lunar New Year celebrations.
“Market is ranging here as external factors have softened,” said another futures trader from Kuala Lumpur, referring to softer soyoil prices.
The Chicago March soybean oil contract fell 0.2%.
The May soybean oil contract on the Dalian Commodity Exchange declined 0.4%, while the Dalian May palm oil contract fell 0.2%.
Palm oil prices are affected by movements in soyoil rates, as they compete for a share in the global vegetable oil market.
Palm oil may slide into a range of RM2,256-2,274 per tonne, as its correction from the Jan 28 high of RM2,333 looks incomplete, Wang Tao, a Reuters market analyst for commodities and energy technicals said.
Palm, soy and crude oil prices at 0534 GMT:
| Contract | Month | Last | Change | Low | High | Volume |
| MY PALM OIL | FEB9 | 2195 | -9.00 | 2190 | 2199 | 37 |
| MY PALM OIL | MAR9 | 2261 | -11.00 | 2256 | 2267 | 852 |
| MY PALM OIL | APR9 | 2294 | -9.00 | 2289 | 2301 | 4464 |
| CHINA PALM OLEIN | MAY9 | 4778 | -8.00 | 4768 | 4812 | 193306 |
| CHINA SOYOIL | MAY9 | 5742 | -20.00 | 5734 | 5782 | 223872 |
| CBOT SOY OIL | MAR9 | 30.36 | -0.06 | 30.31 | 30.41 | 2508 |
| INDIA PALM OIL | JAN9 | 563.30 | -0.30 | 563.00 | 563.7 | 23 |
| INDIA SOYOIL | FEB9 | 777.2 | +0.95 | 775.5 | 778.4 | 2000 |
| NYMEX CRUDE | MAR9 | 54.59 | +0.36 | 54.21 | 54.69 | 27648 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = RM4.0850)
(US$1 = 71.0360 Indian rupees)
(US$1 = 6.6979 Chinese yuan)
Source: TheEdgeMarkets
