VEGOILS-Palm hits 7-week low on sluggish exports as buyers pick up rival soy
* Palm hits new seven-week low, weighed down by weak exports
* Palm prices drop for second month this year
* Export data from cargo surveyors due Saturday and Tuesday
(Updates latest prices)
By Emily Chow
KUALA LUMPUR, April 29 (Reuters) - Malaysian palm oil
futures declined on Friday to a new seven-week low, as palm
exports slow due to stronger demand for rival soyoil.
The palm oil contract for July delivery on the
Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,593
ringgit ($664) per tonne at the close of trade.
It declined for a third week this month, and has lost 5.6
percent since the start of April.
Palm earlier hit a new seven-week low of 2,570 ringgit, its
weakest since March 11. Traded volumes were 40,242 lots of 25
tonnes each, versus a 2015 daily average of 44,600.
"Since the palm and soy spread is narrow, people are taking
soy. We have to see if demand comes in May, that will set the
tone," said a Kuala Lumpur-based trader, adding prices were
unlikely to recover to 2,700 ringgit if demand remained weak.
"We are expecting Ramadan demand but it is not showing up
fully yet."
The holy Muslim month of Ramadan, known for its communal
fasting and feasting, usually increases the consumption of palm
oil for cooking. Demand for the tropical oil usually picks up
one to two months ahead of the festival, which starts in early
June this year.
Recent cargo surveyor data recorded zero to little growth in
export demand for Malaysian palm oil shipments between April 1
and April 25 from a month ago.
Data for the full month of April is scheduled for release on
Saturday and Tuesday, but traders expect little improvement for
April 1-30.
Palm oil may stabilise around a support at 2,571 ringgit per
tonne, and then test a resistance at 2,594 ringgit, according to
technical analysis by Reuters market analyst for commodities and
energy technicals Wang Tao.
In competing oils, the September soybean oil contract
on the Dalian Commodity Exchange fell 1.2 percent,
while the May Chicago Board of Trade soyoil contract rose
0.5 percent.
The offer price for crude palm kernel oil stood at 4,811.57
ringgit per tonne (PKO-MYSTH-M1) in the evening, according to
price assessments by Thomson Reuters.
Palm, soy and crude oil prices at 1046 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL MAY6 2570 -12.00 2545 2574 1071
MY PALM OIL JUN6 2590 -8.00 2570 2607 4741
MY PALM OIL JUL6 2592 -8.00 2570 2609 21376
CHINA PALM OLEIN SEP6 5450 -46.00 5402 5520 924012
CHINA SOYOIL SEP6 6142 -72.00 6136 6252 650746
CBOT SOY OIL JUL6 33.48 +0.00 33.15 33.48 11995
INDIA PALM OIL APR6 564.00 +0.00 563.30 564.3 1130
INDIA SOYOIL MAY6 650.3 -4.85 647 653 49860
NYMEX CRUDE JUN6 46.47 +0.44 45.63 46.63 83775
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 = 3.9030 ringgit)
($1 = 66.4400 Indian rupees)
($1 = 6.4840 Chinese yuan)
(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)