* Palm sees first decline in three sessions
* Palm earlier reached near three-week high
* Market drops tracking poor performing rival oils -trader
(Updates latest prices, quotes)
By Emily Chow
KUALA LUMPUR, June 1 (Reuters) – Malaysian palm oil futures
fell from a near three-week high reached earlier on Wednesday,
coming under pressure from weakness in other oils.
The palm oil contract for August delivery on the
Bursa Malaysia Derivatives Exchange was down 0.8 percent at
2,598 ringgit ($ 627) per tonne at the end of the trading day.
Prices had earlier reached an intraday high of 2,634 ringgit
which was palm oil’s strongest level since May 12. Traded
volumes stood at 44,926 lots of 25 tonnes each, above the 2015
average of 44,600.
Traders said the market fell on weaker oils, singling out
lower soybean on the Chicago Board of Trade (CBOT).
“Palm fell in anticipation of a weaker CBOT tonight,” one
trader said.
The Chicago Board of Trade soyoil contract for July
lost 0.8 percent, while the September soybean oil contract on
the Dalian Commodity Exchange fell by 0.7 percent.
Palm oil had risen earlier on news of in increase in
Malaysia’s biodiesel mandate, which controls the amount of
biofuel in diesel.
Malaysia said it would raise the amount of palm oil in the
diesel fuel pool for the transport sector to 10 percent
beginning in June, from 7 percent currently. For the industrial
sector, the increase will be to 7 percent.
In comparison, Indonesia, the world’s largest palm oil
producer, aims to raise the minimum bio content of diesel to 20
percent this year.
The offer price for crude palm kernel oil stood at 5076.12
ringgit per tonne (PKO-MYSTH-M1) on late on Wednesday, according
to price assessments by Thomson Reuters.
Palm, soy and crude oil prices at 1045 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL JUN6 2620 -11.00 2620 2657 9
MY PALM OIL JUL6 2615 -23.00 2613 2650 2093
MY PALM OIL AUG6 2598 -22.00 2592 2634 23342
CHINA PALM OLEIN SEP6 5246 -2.00 5224 5292 734992
CHINA SOYOIL SEP6 5914 -40.00 5886 5956 510404
CBOT SOY OIL JUL6 31.56 -0.26 31.5 31.94 6650
INDIA PALM OIL JUN6 527.60 -4.50 526.20 532.4 761
INDIA SOYOIL JUN6 644.8 -4.45 643.5 649.4 17570
NYMEX CRUDE JUL6 48.49 -0.61 48.23 49.09 87399
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 = 4.1430 ringgit)
($ 1 = 67.3900 Indian rupees)
($ 1 = 6.5790 Chinese yuan)
(Reporting by Emily Chow; Editing by Christian Schmollinger and
Jane Merriman)
