Vegoils Palm extends losses to hit 4-day low, tracks drop in crude

by **Cals** Thu 21 Jan 2016, 18:20

Vegoils
Palm extends losses to hit 4-day low, tracks drop in crude
By Reuters / Reuters | January 21, 2016 : 2:05 PM MYT

KUALA LUMPUR (Jan 21): Malaysian palm oil futures stretched their losses into a second straight session on Thursday to hit a four-day low, tracking weak crude and
competing vegetable oil prices.
Palm oil prices have come under pressure in the absence of an expected pick up in imports by key consumer China, ahead of Lunar New Year celebrations in February. A slowdown in growth in the world's No.2 economy and ample world supplies of rival soyoil have curbed the country's demand for the tropical oil.
The palm oil contract for April on the Bursa Malaysia Derivatives Exchange fell 0.8% to 2,435 ringgit (US$556.70) per tonne at the midday break — its lowest this week.
Traded volume stood at 10,626 lots of 25 tonnes each.
"Palm oil is down as soyoil on the Chicago Board of Trade closed down yesterday night," said a trader based in Kuala Lumpur. "There's also uncertainty in China's economy and weak crude oil prices."
With China's economic growth cooling to its slowest pace in 25 years, its demand for most commodities has been hit. The country is the world's No.2 consumer of palm oil after India.
Cargo surveyor data on Wednesday showed shipments from Malaysia over Jan 1-20 dropped 8-10% month on month, a sharper fall than traders had anticipated.
In related markets, crude oil prices stabilised, after plumbing more than 12-year lows in the previous session.
Analysts, however, say that a persistent supply glut will continue pressuring the market. Lower crude prices make palm oil less attractive for blending into biodiesel.
Palm oil may slide to 2,430 ringgit, before rising again, as suggested by its wave pattern and a Fibonacci projection analysis, said Reuters market analyst for commodities and energy technicals Wang Tao.
The U.S. March soyoil contract was down 0.4%, while the May soybean oil contract on the Dalian Commodity Exchange fell 0.9%.

Palm, soy and crude oil prices at 0441 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	FEB6	2349	-9.00	2349	2357	3
MY PALM OIL	MAR6	2397	-20.00	2397	2422	1215
MY PALM OIL	APR6	2435	-20.00	2435	2463	7160
CHINA PALM OLEIN	MAY6	4592	-90.00	4582	4650	958374
CHINA SOYOIL	MAY6	5546	-52.00	5544	5598	467000
CBOT SOY OIL	MAR6	29.68	-2.00	29.66	29.91	2055
INDIA PALM OIL	JAN6	422.50	-2.00	421.10	424.50	145
INDIA SOYOIL	FEB6	603.50	+0.05	603.00	605.00	160
NYMEX CRUDE	MAR6	28.36	+0.01	28.32	28.85	24310

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 = 4.3740 ringgit)
(US$1 = 67.9300 Indian rupees)
(US$1 = 6.5794 Chinese yuan renminbi)