* Palm heads for seventh session of decline in eight
* Demand expected to be low in coming weeks – trader
* Palm still targets 2,426 ringgit/tonne – Technicals
By Emily Chow
KUALA LUMPUR, Dec 13 (Reuters) – Malaysian palm oil futures slipped in early trade on Wednesday and were headed for a seventh session of decline in eight, on weak export demand and tracking falls in soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for February delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,468 ringgit ($605.79) a tonne at the midday break.
Palm snapped six sessions of declines in the previous session on short-covering and a decline in November production. It shed 5.5 percent in the six sessions through Monday, hitting a five-and-a-half month low of 2,455 ringgit on Monday evening. POI/
Trading volumes stood at 25,318 lots of 25 tonnes each at the midday break on Wednesday.
The market is down due to weaker soybean oil prices and exports, said a futures trader from Kuala Lumpur, referring to export data from cargo surveyors Intertek Testing Services and Societe Generale (PA:) de Surveillance.
Demand in the coming weeks are expected to be low due to weak demand during the winter and after India, the world’s largest edible oil importer, raised import taxes to a more than decade-high, he added. Generale de Surveillance said exports during Dec. 1-10 fell 22.9 percent from a month earlier, while Intertek Testing Services reported a 16.6 percent decline for the same period. PALM/SGS PALM/ITS
Palm oil demand usually weakens at year-end as it solidifies in cold temperatures, leading buyers such as China and Europe in the northern hemisphere to reduce purchases.
In other related oils, the January soybean oil contract BOF8 on the Chicago Board of Trade fell 0.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange DBYF8 was down 0.3 percent.
Palm oil prices are affected by other edible oils as they compete for a share in the global vegetable oils market.
Palm oil still targets 2,426 ringgit per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals. soy and prices at 0524 GMT Contract
High Volume MY PALM OIL
36 MY PALM OIL
229 MY PALM OIL
7238 CHINA PALM OLEIN MAY8
5340 160662 CHINA SOYOIL
5918 159572 CBOT SOY OIL
33.41 +0.00 33.33 33.45
2357 INDIA PALM OIL
DEC7 560.50 -0.90 560.20 561.7
96 INDIA SOYOIL
716.8 -0.70 716.1 722.8
120 NYMEX CRUDE
57.51 +0.37 57.40 57.58 13986 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 = 4.0740 ringgit) ($1 = 64.4375 Indian rupees) ($1 = 6.6180 Chinese yuan)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Let’s block ads! (Why?)