Palm Oil Ends At Over 1-Week Low As Crude Drops
KUALA LUMPUR, Nov 6 (Reuters) – Malaysian palm oil futures fell to their lowest in over a week on Thursday, reversing gains made earlier in the session as a turn lower in crude oil prices triggered a sell off, traders said.
Brent crude oil fell below $83 a barrel on Thursday, as apparent momentum towards a deal between Iran and world powers over its nuclear programme and a U.S. inventory build added to concerns of oversupply. O/R
The Malaysian ringgit MYR=MY also advanced late Thursday, and was trading at 3.3355 per dollar by 1022 GMT, after falling to Feb. 4 lows of 3.3450 per dollar.EMRG/FRX
“The weaker tone in crude oil, and a slight improvement in the ringgit value pushed the market lower,” said a trader with a foreign commodities brokerage in Kuala Lumpur.
“Prices had rebounded, but were unable to sustain. People who overbought in the morning cut their losses in afternoon trade,” the trader added. The benchmark January contract FCPOc3 on the Bursa Malaysia Derivatives Exchange slipped for a third day to 2,217 ringgit, the lowest since Oct. 28, before settling down 1.3 percent at 2,223 ringgit ($666) per tonne. Prices earlier rose as much as 1 percent to 2,275 ringgit. Total traded volume stood at 53,064 lots of 25 tonnes, above the usual 35,000 lots.
The U.S. soyoil contract for December BOZ4 fell 0.5 percent in late Asian trade, while the most active January soybean oil contract DBYcv1 on the Dalian Commodities Exchange shed 0.2 percent. Both contracts have tumbled about 19 percent so far this year, outstripping palm’s losses of around 16 percent. Chicago soybean futures edged lower on Thursday amid expectations that rapid harvesting of record U.S. crops would boost global supplies. GRA/
A Reuters survey of planters, traders and analysts on Thursday show that Malaysian palm oil stocks likely rose further to a 19-month high of 2.16 million tonnes at the end of October, as exports of the tropical oil dipped. PALM/POLL
Leading analyst Dorab Mistry said that vegetable oil futures on the Dalian Commodity Exchange (DCE) are undervalued against the cash market as they do not reflect doubts over U.S. carry-over stocks, deterring imports into China, the world’s No.2 consumer.
Mistry also said that imported vegetable oil stocks in China, especially palm oil, were “too low at present”, and that prices of Dalian refined, bleached and deodorised palm olein futures had to rise to facilitate more imports of the oil.Palm, soy and crude oil prices at 1028 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV4 2219 -9.00 2219 2220 29
MY PALM OIL DEC4 2230 -28.00 2220 2278 3542
MY PALM OIL JAN5 2223 -29.00 2217 2275 28541
CHINA PALM OLEIN JAN5 5220 -44.00 5164 5240 517010
CHINA SOYOIL MAY5 5864 -14.00 5832 5884 348230
CBOT SOY OIL DEC4 32.58 +0.00 32.55 32.84 6217
INDIA PALM OIL NOV4 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL NOV4 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE DEC4 78.54 -0.14 78.28 78.98 25652Palm 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 = 3.332 Malaysian ringgit) ($1 = 6.1131 Chinese yuan) ($1 = 61.41 Indian rupee) Source : REUTERS