Vegoils Palm oil futures fall on weak exports to start 2016 trading

by **Cals** Mon 04 Jan 2016, 23:36

Vegoils
Palm oil futures fall on weak exports to start 2016 trading
By Reuters / Reuters | January 4, 2016 : 7:04 PM MYT

KUALA LUMPUR (Jan 4): Malaysian palm oil futures fell at the start of 2016 trading on slowing exports, as demand from top consumer China is unlikely to improve despite the upcoming Lunar New Year holiday.
The benchmark palm oil contract for March on the Bursa Malaysia Derivatives Exchange lost 2.1% on Monday, reaching 2,433 ringgit (US$560.34) a tonne at the end of the trading day.
Palm futures, which declined for a second consecutive session from an 18-month high, fell to as low as 2,429 ringgit, the lowest since Dec 21, 2015.
"Sentiment wise, the market is still looking at demand. The market should correct more on the down side, until demand comes in," said a trader from Kuala Lumpur, adding that traders have yet to see much physical buying from China.
"There are tank constraints because of high stocks still.
Everyone has stock concerns but production may be down, cushioning a sharp drop in prices."
Palm output is anticipated to fall as the growing cycle enters the year-end, low-growth period as rains increase in Southeast Asia's growing areas. Weather patterns have also contributed to output concerns; the dry El Nino impact is expected to lower palm's fruit yields and monsoon rains are seen curbing production.
Malaysia saw record-high inventories of 2.9 million tonnes at end-November and falling exports did little to draw down stockpiles in December. Shipments for the full month of December fell 5%-6%, compared with November.
Traded volume stood at 35,782 lots of 25 tonnes each at the close of trade.
In competing vegetable oil markets, the U.S. March soyoil contract is down 1.4%, while the May soybean oil contract on the Dalian Commodity Exchange lost 0.8%.

Palm, soy and crude oil prices at 1007 GMT

Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	JAN6	2248	-150.00	2248	2310	92
MY PALM OIL	FEB6	2355	-59.00	2352	2394	1903
MY PALM OIL	MAR6	2433	-52.00	2429	2474	20995
CHINA PALM OLEIN	MAY6	4804	-46.00	4764	4930	1175296
CHINA SOYOIL	MAY6	5658	-48.00	5634	5760	534146
CBOT SOY OIL	MAR6	30.34	-1.80	30.27	30.80	5748
INDIA PALM OIL	JAN6	409.20	-1.80	406.00	410.00	1949
INDIA SOYOIL	JAN6	615.25	-3.00	612.80	622.00	11060
NYMEX CRUDE	FEB6	37.14	+0.10	36.80	38.32	64217

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 = 4.3420 ringgit)
(US$1 = 66.5375 Indian rupees)
(US$1 = 6.5340 Chinese yuan)