Malaysian crude palm oil futures fell 1.3 percent on Monday, as higher export estimates were offset by a sharp drop in rival US soyaoil futures. The benchmark third-month crude palm oil futures contract on Bursa Malaysia Derivatives, June, ended down 19 ringgit at 1,420 ringgit ($373.68) a tonne. Other traded contracts fell 16 to 18 ringgits. Overall volume was a moderate 5,646 lots of 25 tonnes each.
"The export numbers were friendly, but the market was pulled down by soyabean oil. People are expecting further losses in Chicago tonight," said a trader. Soyaoil futures on the Chicago Board of Trade fell sharply on Friday, following weakness in soyabeans.
May soyaoil ended down 0.76 cent at 23.58 cents per lb, with deferred months down 0.30 to 0.77 cent.
May fell a further 0.23-cent to 23.35 cents per lb during Asian trade on Monday. Soyaoil and palm oil compete for similar export destinations and their prices often move in step.
Societe Generale de Surveillance, the market's leading cargo tracker, said on Monday that exports of Malaysian oil palm products for the period of March 1 to 20 stood at 748,057 tonnes, up 10.3 percent from the 678,151 tonnes seen for February 1 to 20.
On the physical crude palm oil market, March saw bids/offers at 1,420/1,425 ringgit a tonne in Malaysia's southern and central regions, against on Friday's close of 1,440/1,445. Trades were reported at 1,430-1,420 ringgit.
PALM OIL FUTURES:
March (south): 1425.
Open/High/Low: 1427/1440/1419.
Previous closes: 1445.
PALM OIL PHYSICALS:
June (3rd month): 1420.
Previous settlement: 1439.
FUTURES:
Benchmark third-month June down 19 ringgit at 1,420 ringgit ($373.68) a tonne.
PHYSICALS: March offers down 20 ringgit a tonne.