* Malaysia's April palm exports down 5.6 pct -SGS
* Prices dip as low as 2,258 ringgit, level last seen on
April 23
* China soybean oil down more than 2 pct on resuming from
break
(Updates prices)
By Chew Yee Kiat
KUALA LUMPUR, May 2 (Reuters) - Malaysian palm oil futures
fell to a one-week low on Thursday, tracking losses in overseas
soybean oil markets and hurt by expectations of a smaller
decline in stocks after cargo surveyor data showed exports
slowing.
The most active September soybean oil contract on
the Dalian Commodities Exchange fell more than 2 percent after
resuming trading from a three-day holiday break, triggered by
data showing the momentum of China's economic recovery is
slowing.
On Thursday, the final HSBC Purchasing Managers' Index
dropped to 50.4 in April from March's 51.6, and stood a touch
below a flash reading of 50.5, as new export orders fell for the
first time this year.
Soyoil is a close competitor with palm and a fall in its
prices could wean away demand from palm. China is the world's
biggest soy importer.
Weak fundamentals also added pressure on palm oil after
cargo surveyors reported lower shipments in April from a month
ago, damping hopes for stocks to fall below the key
psychological level of 2 million tonnes this month.
"The market is tracking the sharp fall in Dalian soybean oil
after reopening. The palm market is rangebound between 2,250 and
2,350 ringgit and if it breaks the support level at 2,250
ringgit, it could go even lower to 2,230 ringgit," said a trader
with a foreign commodities brokerage in Kuala Lumpur.
The benchmark July contract on the Bursa Malaysia
Derivatives Exchange had lost 1.2 percent to close at 2,259
ringgit ($741) per tonne, just slightly above its intraday low
at 2,258 ringgit, a level last seen on April 23.
Total traded volumes stood at 31,529 lots of 25 tonnes each,
compared to the average daily trading volume of 35,000 lots.
INVENTORY LEVEL AWAITED
On Tuesday, cargo surveyor Societe Generale de Surveillance
reported a decline of 5.6 percent in April exports on the month,
on slowing Chinese demand. Another surveyor, Intertek Testing
Services, reported a fall of 4.3 percent.
Market participants now await Malaysian palm stocks and
output data due on May 10 for further market direction.
Inventory in the world's second-largest producer of the edible
oil stood at 2.17 million tonnes in March, easing from
February's 2.43 million.
"Investors are looking ahead. Exports are lower, but we
heard production is also lower. It's hard to say whether stocks
will drop below 2 million tonnes, but most likely it could be
just a marginal drop," said the Kuala Lumpur trader.
In other markets, oil held near $100 a barrel on Thursday,
pressured by ample supplies and fresh signals of weak global
economic growth, which stirred concern about the demand outlook.
In vegetable oil markets, U.S. soyoil for July delivery
edged 0.1 percent lower in late Asian trade, weighed down
by concerns of a slowing economic recovery in China.
Palm, soy and crude oil prices at 1004 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2250 +1.00 2250 2255 117
MY PALM OIL JUN3 2255 -28.00 2254 2268 3664
MY PALM OIL JUL3 2259 -27.00 2258 2275 13639
CHINA PALM OLEIN SEP3 5834 -162.00 5826 5900 370838
CHINA SOYOIL SEP3 7184 -156.00 7170 7250 644308
CBOT SOY OIL JUL3 48.80 -0.05 48.75 48.99 5100
NYMEX CRUDE JUN3 91.36 +0.33 90.65 91.49 25634
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
Crude in U.S. dollars per barrel
($1=3.05 ringgit)
(Editing by Muralikumar Anantharaman)
