Palm Falls to 2-Week Low in 5th Day of Losses, Poor Export Data Weight

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KUALA LUMPUR, March 10 (Reuters) – Malaysian palm oil futures fell to a2-week low on Tuesday, stretching its losing streak into a fifth day asdisappointing exports in early March, alongside losses in crude and soymarkets, piled pressure onto the benchmark contract.

Cargo surveyor Intertek Testing Services showed that Malaysian palm oilshipments for March 1-10 fell 12.3 percent to 262,168 tonnes compared with thesimilar period a month ago, as Europe and China slashed imports of the tropicaloil. 

“During the Palm Oil Conference everyone was talking about goodexports in March, but this is disappointing,” said a trader with a foreigncommodities firm in Kuala Lumpur.

“The pressure is definitely coming from exports…26,000 tonnes aday is very, very low.”

Another cargo surveyor Societe Generale de Surveillance showed thatexports for the same period slid 19.3 percent. The benchmark May contract onthe Bursa Malaysia Derivatives Exchange hit its lowest since Feb. 24 at 2,221ringgit in the afternoon session, before settling 1.5 percent lower at 2,238ringgit ($605) a tonne by Tuesday’s close – marking a fifth day of losses.

Total traded volume stood at 60,412 lots of 25 tonnes, much higher thanthe usual 35,000 lots. Malaysian Palm Oil Board data, released after the middaybreak, showed that Malaysian palm oil stocks hit a seven-month low of 1.74million tonnes at the end of February. But the fall was smaller than estimatesfor inventories to ease to 1.67 million tonnes. Exports for the month plungedto their weakest in nearly eight years, the MPOB said.

“Overall, the trend is weak,” said a second Kuala Lumpur-basedtrader. “The stocks are unlikely to hit 1.5 million tonnes…plus demandtook a hit in February, and now March,” the trader added. Palm gainedlittle respite from the slide in the ringgit against the dollar, which scorednear 12-year highs on Tuesday and mounted pressure on most emerging Asiancurrencies. A weaker ringgit that touched 3.7025, its lowest since March 2009,typically makes the ringgit-priced feedstock cheaper for overseas buyers. But astrong dollar also hurt oil prices, which in turn weighed on palm.

Brent crude futures dipped below $58 a barrel on Tuesday as the dollarscaled multi-year highs and the oil market remained hobbled by oversupply andweak demand. 

In vegetable oil markets, the most active May soybean oil contract onthe Dalian Commodity Exchange fell 0.8 percent in late Asian trade. The U.S.soyoil contract for May dropped 0.7 percent.


Palm, soy and crude oil prices at 1012 GMT


 Contract        Month    Last  Change     Low    High Volume

 MY PALM OIL      MAR5    2260  -20.00    2230    2300    116

 MY PALM OIL      APR5    2230  -42.00    2216    2271   2589

 MY PALM OIL      MAY5    2238  -33.00    2221    2276  28834

 CHINA PALM OLEIN SEP5    4742   -64.00   4732    4808  441202

 CHINA SOYOIL     SEP5    5464  -42.00    5456    5524 423398

 CBOT SOY OIL     MAY5   30.79   -7.40   30.70   31.20  11984

 INDIA PALM OIL   MAR5  445.30   -7.40  443.60  452.10   1329

 INDIA SOYOIL     APR5  574.65   -6.40  573.50  580.80  22885

 NYMEX CRUDE      APR5   49.56   -0.44   49.46   50.36  24492


Palm oil prices in Malaysian ringgit per tonne                                                  ($1= 3.7000 Malaysian ringgit) 
CBOT soy oil in U.S. cents per pound                                                               ($1= 6.2620 Chinese yuan) 
Dalian soy oil and RBD palm olein in Chinese yuan per tonne      ($1 = 62.73 Indian rupee)

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

Source : Reuters


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