VEGOILS-Palm oil falls to two-week low, tracks soy losses

Reuters

* Malaysia Aug stocks up 0.1 pct at 1.67 mln T -MPOB

* Malaysia Sept. 1-10 palm exports up 10.8 pct -ITS

* Palm oil targets 2,323 ringgit -technicals

(Updates prices)

By Chew Yee Kiat

SINGAPORE, Sept 10 (Reuters) - Malaysian palm oil futures fell to their

lowest in more than two weeks on Tuesday, tracking losses in the U.S. soy market

ahead of the next U.S. Department of Agriculture production forecast.

Soybeans have lost almost 1.5 percent so far this week, weighing on

palm oil, a close substitute for soybean oil.

Palm investors were also cautious in the morning session ahead of August

stocks data. The Malaysian Palm Oil Board (MPOB) numbers came after the midday

break and showed a 0.1 percent increase from a month earlier.

The reported end-stocks level, at 1.67 million tonnes, was below earlier

expectations for a 4 percent rise to 1.73 million tonnes, but failed to lift the

market.

"Palm oil is down mostly on external markets today, for instance look at

Dalian soybean oil. There is still uncertainty regarding the U.S. dry weather

impact on soy, and globally we are also looking at the situation in Syria," said

a trader with a foreign commodities brokerage in Kuala Lumpur.

The benchmark November contract on the Bursa Malaysia Derivatives

Exchange lost 2.1 percent to close at 2,348 ringgit ($717) per tonne, slightly

above its intraday low at 2,346 ringgit, a level last seen on Aug. 23.

Total traded volume stood at 34,291 lots of 25 tonnes each, a touch lower

than the average 35,000 lots.

Technicals showed palm oil may drop to 2,323 ringgit per tonne after a

moderate rebound to 2,385 ringgit, according to Reuters market analyst Wang Tao.

Malaysian palm oil exports for Sept. 1-10 rose 10.8 percent to 462,671

tonnes, from 417,414 tonnes during Aug. 1-10, cargo surveyor Intertek Testing

Services said after the midday break.

Traders said while the exports figures were encouraging, a recovery in the

ringgit, that makes the feedstock more expensive to overseas buyers, probably

kept some investors on the sidelines. The Malaysian currency has

recovered almost 1.6 percent against the greenback this week.

In other markets, global oil prices fell to about $113 a barrel on Tuesday

after a Russian proposal to avert a U.S. strike on Syria appeared to gather

steam, easing investor concerns that another Middle East conflict would further

disrupt fuel supplies.

In vegetable oil markets, the U.S. soyoil contract for December was

almost flat in late Asian trade. The most-active January soybean oil contract

on the Dalian Commodities Exchange lost 1.6 percent.

Palm, soy and crude oil prices at 1006 GMT

Contract Month Last Change Low High Volume

MY PALM OIL SEP3 2340 -61.00 2340 2369 61

MY PALM OIL OCT3 2355 -47.00 2349 2381 881

MY PALM OIL NOV3 2348 -51.00 2346 2383 17161

CHINA PALM OLEIN JAN4 5494 -154.00 5454 5578 701638

CHINA SOYOIL JAN4 7192 -118.00 7154 7244 951020

CBOT SOY OIL DEC3 43.19 +0.02 43.00 43.55 7693

NYMEX CRUDE OCT3 108.47 -1.04 108.20 108.95 21148

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=3.275 Malaysian ringgit)

(Editing by Joseph Radford and Prateek Chatterjee)

Rates

View Comments (0)