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JAKARTA (Oct 30): Malaysian palm oil futures fell by the midday break on Tuesday, stepping back from a nearly 2% rebound a day earlier, as weak demand persisted while lower US soybean prices compounded the market’s woes.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was down 0.78% at RM2,170 (US$519.39) per tonne at the midday break.
Palm failed to sustained the 1.8% gain posted a day earlier, breaking four consecutive losses last week.
Trading volume stood at 11,930 lots of 25 tonnes each at noon.
“Demand is not coming in, exports is still looking weak so it’s difficult to sustain gains,” said a palm oil trader in Kuala Lumpur.
Palm oil may end its current bounce around a resistance at RM2,202 per tonne and then resume its downtrend, said Wang Tao, a Reuters market analyst for commodities and energy technicals. Palm may eventually travel to RM2,099.
Meanwhile, a weak soybean market also put pressure on palm oil, the trader said.
US soybean futures fell on Tuesday to hit a six-week low, as a USDA report putting harvesting ahead of market expectations added to pressure from abundant supplies and the US-China trade dispute.
The January soybean oil contract on the Dalian Commodity Exchange fell 0.35% on Tuesday, while the Dalian January palm oil contract edged down 0.09%.
Palm oil prices are affected by movements of other edible oils as they compete for a share in the global vegetable oil market.
Palm, soy and cured oil prices at 0518 GMT:
| Contract | Month | Last | Change | Low | High | Volume |
| MY PALM OIL | NOV8 | 2056 | -19 | 2055 | 2061 | 284 |
| MY PALM OIL | DEC8 | 2118 | -18 | 2116 | 2125 | 1730 |
| MY PALM OIL | JAN9 | 2170 | -17 | 2168 | 2177 | 5665 |
| CHINA PALM OLEIN | JAN9 | 4656 | -4 | 4652 | 4704 | 190228 |
| CHINA SOYOIL | JAN9 | 5660 | -20 | 5658 | 5736 | 235782 |
| CBOT SOY OIL | DEC8 | 27.93 | 0.04 | 27.84 | 27.97 | 2466 |
| INDIA PALM OIL | OCT8 | 574.2 | 0.1 | 573.8 | 574.7 | 22 |
| INDIA SOYOIL | NOV8 | 755.25 | -0.15 | 755 | 756.7 | 1170 |
| NYMEX CRUDE | DEC8 | 67.24 | 0.2 | 66.6 | 67.24 | 34898 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = 6.9678 Chinese yuan)
(US$1 = RM4.1780)
(US$1 = 73.5775 Indian rupees)
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