* Palm fell to six-month low of 2,568 rgt/T
* Market sees fourth decline in five sessions
(Updates with closing prices)
By Emily Chow
KUALA LUMPUR, April 12 (Reuters) – Malaysian palm oil
futures fell on Wednesday, falling to their lowest in six
months, tracking weaker overnight soyoil on the Chicago Board of
Trade and on concerns about higher output.
The benchmark contract for June delivery on the
Bursa Malaysia Derivatives Exchange was down 0.9 percent at
2,589 ringgit ($ 585.08) a tonne at the close of trade. It fell
to 2,568 ringgit earlier in the afternoon session, its lowest
since Oct. 11. The benchmark recorded its fourth decline in five
Traded volumes stood at 54,650 lots of 25 tonnes each at the
end of the trading day.
“Overnight weakness in soyoil is putting pressure on palm
oil prices today,” said a futures trader from Kuala Lumpur.
Concerns about growing palm output also weighed on the
market, another trader said.
Production of the tropical oil in the world’s second largest
producer is seen rising in April, as the lingering effects of
the crop-damaging El Nino wear off and as output rises in line
with seasonal trends.
Data from industry regulator, the Malaysian Palm Oil Board
(MPOB), showed that output surged 16.3 percent to 1.46 million
tonnes in March, its first monthly gain since September, and its
strongest on-month rise in more than a year. (MYPOMP-CPOTT)
The data also showed that end-stocks rose 6.5 percent
on-month to 1.55 million tonnes, while exports climbed 14.3
percent to 1.27 million tonnes.
Palm oil prices are also impacted by movements in rival
edible oils, as they compete for a share in the global vegetable
oils market. Soybean oil on the Chicago Board of Trade
fell as much as 1.3 percent on Tuesday on concerns of ample
supplies, before rising 0.1 percent on Wednesday.
In other related oils, the September soybean oil contract on
the Dalian Commodity Exchange was down 1.6 percent,
while the September contract for palm olein on the Dalian
Commodity Exchange fell 0.9 percent.
Palm, soy and crude oil prices at 1033 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR7 2750 -58.00 2736 2840 325
MY PALM OIL MAY7 2680 -30.00 2664 2715 2256
MY PALM OIL JUN7 2591 -23.00 2568 2619 22883
CHINA PALM OLEIN SEP7 5172 -46.00 5152 5262 714768
CHINA SOYOIL SEP7 5898 -98.00 5888 6028 726862
CBOT SOY OIL MAY7 31.1 +0.03 30.98 31.38 13541
INDIA PALM OIL APR7 514.00 +0.30 510.20 515.4 1049
INDIA SOYOIL APR7 634 +1.00 631.7 634.8 2250
NYMEX CRUDE MAY7 53.69 +0.29 53.35 53.76 74639
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 = 4.4250 ringgit)
($ 1 = 64.6800 Indian rupees)
($ 1 = 6.8925 Chinese yuan)
(Reporting by Emily Chow; Editing by Sunil Nair and Louise