Vegoils Palm oil falls; reverses gains on slow demand, weak crude oil

by **Cals** Tue 15 Dec 2015, 05:13

Vegoils

[size=28]Palm oil falls; reverses gains on slow demand, weak crude oil

By Reuters / Reuters | December 14, 2015 : 7:00 PM MYT +
KUALA LUMPUR (Dec 14): Malaysian palm oil futures fell on Monday, retracing from a two-month high reached in the previous session, as slow demand for palm and weak crude oil prices capped gains

The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange lost 1.6% to end the trading day at 2,402 ringgit (US$555.50) a tonne. The contract closed 2.7% higher on Friday at 2,441 ringgit.

Traded volume stood at 38,812 lots of 25 tonnes each.

"Demand is still not coming in, that's the main reason why the market is softer today. Crude oil has also been rather depressed and this will keep a lid on prices for a while," said a Kuala Lumpur-based trader.

"The market should come off until we see some consistent demand coming in."

Palm oil shipments from Malaysia, the world's second largest producer, dropped 12.4% to 1.5 million tonnes in November, according to government data last Thursday.

Cargo surveyors also reported a 33%-35% drop in exports for Malaysian palm oil products in the first ten days of December compared with the same time period a month ago.

Crude oil fell for a seventh straight session on Monday, the longest losing streak since mid-2014, as the International Energy Agency's (IEA) forecast of rising supplies put pressure on prices.

Both benchmark futures for crude oil have fallen since the Organization of the Petroleum Exporting Countries (OPEC)abandoned its output ceiling on Dec 4.

Palm is influenced by crude oil prices, as the tropical oil is used for blending into biodiesel, a substitute for crude oil.

In competing vegetable oil markets, the May soybean oil contract on the Dalian Commodity Exchange gained 0.4%.

Palm, soy and crude oil prices at 1022 GMT

[/size]

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	DEC5	2220	-2.00	2220	2220	12
MY PALM OIL	JAN6	2305	-37.00	2305	2340	1273
MY PALM OIL	FEB6	2402	-39.00	2401	2433	20605
CHINA PALM OLEIN	MAY6	4708	+28.00	4702	4786	1121998
CHINA SOYOIL	MAY6	5578	+22.00	5516	5622	981652
CBOT SOY OIL	JAN6	31.25	-1.30	31.19	31.47	5528
INDIA PALM OIL	DEC5	408.30	-1.30	406.20	410.80	890
INDIA SOYOIL	DEC5	637.35	+3.45	635.30	638.00	3655
NYMEX CRUDE	JAN6	35.33	-0.29	35.19	35.69	36420

[size]

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 = 4.3240 ringgit)
(US$1 = 67.0500 Indian rupees)
(US$1 = 6.4588 Chinese yuan)
[/size]