Vegoils Palm extends losses to second day on global commodities selloff

by **Cals** Thu 20 Aug 2015, 20:36

Vegoils
Palm extends losses to second day on global commodities selloff

JAKARTA (Aug 20): Malaysian palm oil futures eased for a second day on Thursday as weakness in global commodity markets put pressure on vegetable oil prices.
The benchmark palm oil contract for November on the Bursa Malaysia Derivatives Exchange was down 1.8 percent at 1,999 Malaysian ringgit ($487.32) a tonne by the midday break, its lowest level for morning trade. The fall followed a 1.2 percent decline in the previous session.
Traded volume stood at 24,129 lots of 25 tonnes each, well above the roughly 13,500 lots usually traded by midday.
Palm oil may drop to 1,997 ringgit per tonne, as indicated by its wave pattern and a Fibonacci projection analysis, said Wang Tao, a Reuters market analyst for commodities technicals.
The palm market fell as a continued selloff in global commodities spilled over to the market, a trader in Kuala Lumpur said.
U.S. soybean futures slid for a third consecutive session on Thursday as widespread rains in dry parts of the Midwest crop belt boosted expectations of higher yields.
In other vegetable oil markets, the U.S. September soyoil contract was down 0.1 percent in early Asian trade, while the most active soybean oil contract on the Dalian Commodity Exchange was up 0.3 percent.
U.S. crude oil slumped over 4 percent on Wednesday to hit a 6-1/2-year low near $40 a barrel, as a huge unexpected stockpile build in the United States reinforced concerns about a growing global oil glut.
Lingering weakness in the Malaysian ringgit and expectations of positive palm oil export numbers have lent some comfort to the market and cushioned the selloff, the traders said.
The ringgit, the currency that benchmark palm is priced in, has declined by about 15 percent so far this year to be Southeast Asia's worst performing currency.
Exports of Malaysian palm oil products during August 1-20 rose 9.3 percent to 991,862 tonnes from 907,574 tonnes shipped during July 1-20, cargo surveyor Intertek Testing Services said on Thursday.
Palm, soy and crude oil prices at 0512 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	SEP5	1944	-27.00	1928	1950	195
MY PALM OIL	OCT5	1980	-37.00	1980	2006	3543
MY PALM OIL	NOV5	1999	-36.00	1999	2023	15200
CHINA PALM OLEIN	JAN6	4500	-32.00	4464	4552	508024
CHINA SOYOIL	JAN6	5542	+16.00	5500	5592	583260
CBOT SOY OIL	DEC5	28.14	-1.90	28.10	28.25	3806
INDIA PALM OIL	AUG5	387.90	-1.90	386.00	388.20	354
INDIA SOYOIL	AUG5	585.40	+0.10	585.10	585.50	160
NYMEX CRUDE	SEP5	40.54	-0.26	40.45	40.75	608

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 = 4.1020 ringgit)
($1 = 65.2400 Indian rupees)
($1 = 6.3865 Chinese yuan renminbi)