VEGOILS-Palm oil falls nearly 1 pct on weaker related oils, slow demand
* Palm charts first decline in three days
* Market also down on output gains, to trade sideways – trader
* Malaysia June CPO export tax kept at 5 pct – govt circular (Updates with closing prices)
By Emily Chow
KUALA LUMPUR, May 16 (Reuters) – Malaysian palm oil futures edged down on Wednesday, their first decline in three days, tracking weaker related oils and due to slowing export demand.
The benchmark palm oil contract for August delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.9 percent at 2,414 ringgit ($608.83) a tonne at the close of trade, its sharpest daily fall in nearly two weeks.
Palm had earlier jumped to a one-month high on Monday tracking a weaker ringgit MYR= following the election defeat of a coalition that ruled the country for six decades. ended Monday 1.5 percent higher, while continuing gains on Tuesday as well. POI/
Trading volume stood at 38,942 lots of 25 tonnes each at Wednesday’s close.
"Palm is lower today on last night’s soyoil and also the weaker Dalian," said a Kuala Lumpur-based trader, referring to the overnight decline in soyoil on the U.S. Chicago Board of Trade and China’s Dalian Commodity Exchange.
Another trader added that she expected the market to trade sideways due to several factors.
"The market is holding on a weak ringgit and a slower-than-expected increase in production," she said, as a weaker ringgit typically supports palm by making it cheaper for holders of foreign currencies.
"But palm demand is expected to slow also as its spread against soyoil does not make it competitive. Malaysia’s crude palm oil export tax is also there."
Palm oil shipments from Malaysia, the world’s second largest exporter, fell 13.7-14.9 percent in the first half of May versus the corresponding period in April, data from inspection company AmSpec Agri Malaysia and cargo surveyor Societe Generale (PA:) de Surveillance showed on Tuesday. PALM/AAM PALM/SGS
Traders said the demand slowdown could be attributed to Malaysia’s resumption of a crude palm oil export tax, which was set at 5 percent in May following four previous months of suspension. announced on Wednesday it will keep its crude palm oil tax rate at 5 percent in June. other related oils, the Chicago July soybean oil contract BOcv1 declined 0.4 percent on Tuesday and was last down 0.6 percent on Wednesday.
Meanwhile, the September soybean oil on China’s Dalian Commodity Exchange DBYU8 was down 0.8 percent and the Dalian September palm oil contract DCPU8 fell 0.4 percent.
Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market.
Palm, soy and prices, as of 1045 GMT Contract
High Volume MY PALM OIL
1015 MY PALM OIL
9830 MY PALM OIL
2427 12934 CHINA PALM OLEIN SEP8
5092 311032 CHINA SOYOIL
5778 379490 CBOT SOY OIL
6218 INDIA PALM OIL
MAY8 653.30 -4.70 652.20
770 INDIA SOYOIL
751.6 -3.20 750.6
8890 NYMEX CRUDE
71.20 -0.11 70.85 71.34 116430 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 = 3.9650 ringgit) ($1 = 67.8525 Indian rupees) ($1 = 6.3755 Chinese yuan)
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