VEGOILS-Palm falls on slower-than-expected output declines
* Market hits near 3-week low of 2,271 rgt/T
* Weak oil and soyoil prices also weigh on palm - trader
* Palm may fall into 2,256-2,274 rgt/T range - techs
By Emily Chow
KUALA LUMPUR, Feb 11 (Reuters) - Malaysian palm oil futures
fell to their lowest in nearly three weeks on Monday, as traders
were bearish over data showing weaker-than-expected output
declines.
The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to
2,274 ringgit ($558.72) a tonne at the midday break.
It had earlier fallen to 2,271 ringgit, its lowest since
Jan. 23.
Trading volumes stood at 14,952 lots of 25 tonnes each at
noon. (1FCPO-TOT)
"The market reacted to estimations from the Malaysia Palm
Oil Association, which showed production declining less than
earlier polls," said a Kuala Lumpur-based trader, referring to
the data showing January output falling 5.7 percent on-month to
1.71 million tonnes.
A Reuters poll had forecast January output falling 10.9
percent from December to 1.61 million tonnes.
"Weak external markets, led by the falls in crude and U.S.
soyoil, also weighed on palm," she said.
Another futures trader said that data showing slowing
exports during Febuary 1-10 versus the corresponding period last
month "should keep the market under pressure until the MPOB data
is released."
Exports of Malaysian palm oil products for February 1-10
fell 11.2 percent from January 1-10, according to independent
inspection company AmSpec Agri Malaysia.
Data from the MPOB, released at the market's midday break,
showed January stockpiles falling 6.7 percent from the previous
month to 3 million tonnes, while production fell 3.9 percent to
1.74 million tonnes.
Meanwhile, exports rose 21.2 percent to 1.68 million tonnes
in January.
In other related oils, the Chicago March soybean oil
contract fell 1 percent, while the May contract on the
Dalian Commodity Exchange rose 0.2 percent.
The Dalian January palm oil contract, meanwhile, was
down 0.04 percent.
Palm oil prices are affected by movements in soyoil rates,
as they compete for a share in the global vegetable oil market.
Palm oil may fall into a range of 2,256-2,274 ringgit per
tonne, as its uptrend from the Nov. 27, 2018 low of 1,940
ringgit has reversed, said Wang Tao, a Reuters market analyst
for commodities and energy technicals.
Palm, soy and crude oil prices at 0445 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL FEB9 0 +0.00 0 0 0
MY PALM OIL MAR9 2237 -18.00 2236 2253 1160
MY PALM OIL APR9 2274 -16.00 2271 2290 5722
CHINA PALM OLEIN MAY9 4770 -2.00 4762 4828 162764
CHINA SOYOIL MAY9 5736 +10.00 5722 5804 192612
CBOT SOY OIL MAR9 30.56 -0.31 30.54 30.87 5042
INDIA PALM OIL FEB9 568.20 -2.30 566.60 570.7 104
INDIA SOYOIL FEB9 776 +1.10 772.5 777 710
NYMEX CRUDE MAR9 52.02 -0.70 51.90 52.78 66823
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 = 4.0700 ringgit)
($1 = 71.2410 Indian rupees)
($1 = 6.7762 Chinese yuan)
(Reporting by Emily Chow; Editing by Shreejay Sinha)