Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil falls to one-week low on higher supply outlook

KUALA LUMPUR, Sept 1 (Reuters) - Malaysian palm oil futures slipped on Thursday to a one-week low, tracking weaker rival oils and amid anticipation of higher supply as plantations enter peak production season.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange fell 67 ringgit, or 1.62%, to 4,077 ringgit ($909.64) a tonne by the midday break, its lowest since Aug. 24.

Market is under pressure from weakness in commodity markets and expectations of strong production growth in August, and is likely to offset exports and produce stocks above 2 million tonnes, a Kuala Lumpur-based trader said.

Exports of Malaysian palm oil products for August rose 1.6% to 1,299,116 tonnes from July, cargo surveyor Intertek Testing Services said on Wednesday.

In top producer Indonesia, a lower threshold for export levies will come into effect on Nov. 1, marking an end to several months where the country waived the tariffs to encourage shipments amid a glut in domestic stock.

Indonesia also set its crude palm oil reference price at $929.66 per tonne for Sept. 1-15 period, putting the export tax lower than previously expected at $74 per tonne.

Dalian's most-active soyoil contract DBYcv1 fell 2.3%, while its palm oil contract DCPcv1 lost 2.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil is poised to break a support at 4,085 ringgit per tonne, and fall towards 3,857 ringgit, Reuters technical analyst Wang Tao said.

($1 = 4.4820 ringgit)
By: via Malaysian Palm Oil Council Russia