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Thursday, August 11, 2022

VEGOILS-Palm oil at six-month low on rising output, inventories

* Palm charts third straight session of losses

* Market low of 2,592 rgt/T, weakest since Oct. 11

* Down on expectations of rising output, end-stocks

(Updates with closing prices, quote)

By Emily Chow

KUALA LUMPUR, April 10 (Reuters) – Malaysian palm oil

futures ended the trading day on Monday at their lowest in six

months, weighed down by higher than expected production and

end-stocks data from an industry regulator.

Data from the Malaysian Palm Oil Board (MPOB) showed

end-stocks for March rose 6.5 percent from February to 1.55

million tonnes. Output surged 16.3 percent to 1.46 million

tonnes, the first monthly gain since September and the strongest

month-on-month rise in over a year. (MYPOMP-CPOTT)

Both output and inventories data outpaced market

expectations, which had been for stocks to rise 0.1 percent and

production to climb 10.4 percent, according to a Reuters poll.

The benchmark palm oil contract for June delivery

on the Bursa Malaysia Derivatives Exchange was down 2.5 percent

at 2,593 ringgit ($ 584.93) a tonne at the close of trade, its

weakest level since Oct. 11.

Traded volumes stood at 63,036 lots of 25 tonnes each in the


“Palm’s decline is mainly on MPOB, which showed much higher

end-stocks and high imports,” said a futures trader from Kuala


The MPOB data also showed that exports rose 14.3 percent to

1.27 million tonnes and imports tripled.

Concerns of rising output weighed on the market despite data

indicating an improvement in demand. Palm oil shipments from

Malaysia, the world’s second-biggest producer of the tropical

oil, soared 20.9 percent during the first 10 days of April

compared with last month, showed data from cargo surveyor

Intertek Testing Services.

Another cargo surveyor, Societe Generale de Surveillance,

showed exports rose 24.8 percent in the same period.

Price movements in related edible oils, including soyoil,

have an impact on palm oil, as they compete for a share in the

global vegetable oils market. Soybean oil on the Chicago

Board of Trade dropped 1 percent.

In other related vegetable oils, the September soybean oil

contract on the Dalian Commodity Exchange fell 0.1

percent, while the September contract for palm olein on the

Dalian Commodity Exchange slid 2.7 percent.

Palm, soy and crude oil prices at 1037 GMT

Contract Month Last Change Low High Volume

MY PALM OIL APR7 2833 -53.00 2828 2871 316

MY PALM OIL MAY7 2686 -70.00 2685 2746 3480

MY PALM OIL JUN7 2592 -67.00 2592 2681 27039

CHINA PALM SEP7 5226 -142.00 5220 5448 1136852


CHINA SOYOIL SEP7 5968 -4.00 5940 6044 765434

CBOT SOY OIL MAY7 31.32 -0.30 31.31 31.8 8824

INDIA PALM OIL APR7 513.70 -8.00 513.20 520 1613

INDIA SOYOIL APR7 632.8 -3.10 632.1 634.75 6120

NYMEX CRUDE MAY7 52.57 +0.33 52.29 52.68 91958

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 = 4.4330 ringgit)

($ 1 = 64.5300 Indian rupees)

($ 1 = 6.9020 Chinese yuan)

(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips and

Mark Potter)

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