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Siti Safura Masiron


The Edge Markets MY



Palm hits over one-week low on higher production outlook

11.04.2019 (The Edge Markets MY) - KUALA LUMPUR (April 11): Malaysian palm oil futures edged down to their lowest in more than a week on Thursday evening, weighed down by expectations of rising production.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 0.7% at 2,154 ringgit (US$523.83) a tonne at the close of trade in its second session of declines.

The market earlier fell by up to 1% to 2,148 ringgit, its lowest level since April 2.

The market dropped as much as 2% in the previous session as official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.

The MPOB data showed end-stocks declined 4.6% to 2.92 million tonnes from February, while output rose 8.3% to 1.67 million tonnes on the month.

"Players are digesting April's supply and demand after Wednesday's selloff on higher-than-expected MPOB stocks," said a Kuala Lumpur-based trader.

"However, I think we are seeing a lower market on a higher April production outlook."

Meanwhile, Malaysian palm oil exports during the April 1-10 period rose from the corresponding period last month by 6.2% and 12.6%, according to Amspec Agri Malaysia and Intertek Testing Services respectively.

Cargo surveyor Societe Generale de Surveillance reported a 27.6% gain in exports in the same time period.

In other related oils, Chicago May soybean oil contract was down 0.3%, and the May soyoil contract on the Dalian Commodity Exchange slipped 0.4%.

Meanwhile, the Dalian May palm oil contract declined 0.6%.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.


Palm, soy and crude oil prices at 1105 GMT 


 Contract                         Month       Last       Change       Low       High    Volume

 MY PALM OIL                APR9          0          -16.00           0           0             0

 MY PALM OIL                MAY9       2112       -18.00        2104      2144      1656

 MY PALM OIL                JUN9       2155       -16.00        2148      2180     19595

 CHINA PALM OLEIN     MAY9       4462       -28.00        4440      4474     93772

 CHINA SOYOIL            MAY9        5434       -20.00        5430      5462     72840

 CBOT SOY OIL            MAY9        28.97        -0.10        28.95     29.06      3280

 INDIA PALM OIL           APR9      533.40        -2.40       532.00    536.9       361

 INDIA SOYOIL              APR9       740.6         -2.65        739.7     741.9     1530

 NYMEX CRUDE           MAY9        64.06        -0.55        63.87      64.49   139172


 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 = 4.1120 ringgit)

(US$1 = 6.7142 Chinese yuan)

(US$1 = 68.8900 Indian rupees)