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Siti Safura Masiron


The Edge Markets MY



Palm oil falls more than 2% on bearish data

10.04.2019 (The Edge Markets MY) - KUALA LUMPUR (April 10): Malaysian palm oil futures fell more than 2% to a one-week low in evening trade on Wednesday, as an official data release from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and output were higher than forecast.

The data, released during the midday break, showed that March end-stocks were down 4.6% from February at 2.92 million tonnes, while output rose 8.3% to 1.67 million tonnes.

Meanwhile, exports surged by 22.4% from February to 1.62 million tonnes.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1.9% at 2,170 ringgit (US$528.62) a tonne at midday.

It earlier fell as much as 2.6% to 2,155 ringgit, the lowest level since April 2.

"The official data is bearish as production was expected to be lower," said one Kuala Lumpur-based trader, adding this also contributed to higher than expected inventories.

A second trader said the market fell in the afternoon, as the MPOB data showed a higher production trend.

In related oils, the Chicago May soybean oil contract was down 0.7% and the May soyoil contract on the Dalian Commodity Exchange rose 0.2%.

The Dalian May palm oil contract, meanwhile, slipped by 0.4%.

Palm oil prices are affected by movements in soyoil, with which it competes in the global vegetable oil market.


 Palm, soy and crude oil prices at 1044 GMT


 Contract                       Month       Last      Change      Low       High      Volume

 MY PALM OIL              APR9       2100      -64.00       2090      2120         47

 MY PALM OIL              MAY9       2132      -64.00       2120      2200       2830

 MY PALM OIL              JUN9       2170      -42.00        2155      2219     24835

 CHINA PALM OLEIN   MAY9       4466      -16.00       4454       4520    282838

 CHINA SOYOIL          MAY9        5450       +8.00       5442       5472      94088

 CBOT SOY OIL           MAY9    28.85          -0.19       28.81      29.07       5844

 INDIA PALM OIL         APR9   536.30          -3.60      532.00     542.8      1055

 INDIA SOYOIL            APR9   743.15         -3.30         742        748.2      4770

 NYMEX CRUDE          MAY9    64.39        +0.41       64.05       64.54    102340


 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


(US$1 = 4.1050 ringgit)

(US$1 = 6.7171 Chinese yuan)

(US$1 = 69.2900 Indian rupees)