Commodities

VEGOILS-Palm oil slumps 4% to over one-week low as July exports decline

Credit: REUTERS/LIM HUEY TENG

Malaysian palm oil futures fell about 4% on Monday to a more than one-week low, weighed down by a drop in July exports and weakness in competing oils on the Dalian and Chicago exchanges.

KUALA LUMPUR, Aug 2 (Reuters) - Malaysian palm oil futures fell about 4% on Monday to a more than one-week low, weighed down by a drop in July exports and weakness in competing oils on the Dalian and Chicago exchanges.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 185 ringgit, or 4.23%, to 4,184 ringgit ($990.53) a tonne in early trade to hit its lowest since July 23 after rising 2.3% last week.

FUNDAMENTALS

* Exports of Malaysian palm oil products for July fell between 5.0% and 7.7% from June, cargo surveyors said on Saturday.

* Oil prices fell by more than $1 on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers. O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

* Dalian's most-active soyoil contract DBYcv1 fell 3.1%, while its palm oil contract DCPcv1 slipped 3.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.7%.

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

* Palm oil may fall to 4,287 ringgit per tonne, as it failed again to rise above the May 12 high of 4,525 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares face another tough week as Beijing's regulatory crackdown fans fears about China's economy, though upbeat economic data in the United States and Europe and solid corporate earnings put a floor under their markets. MKTS/GLOB

DATA/EVENTS

0030 Japan Jaibun Bank Mfg PMI

0145 China Caixin Mfg PMI Final

0750 France Markit Mfg PMI

0755 Germany Markit/BME Mfg PMI

0800 EU Markit Mfg Final PMI

0830 UK Markit/CIPS Mfg PMI Final

1345 US Markit Mfg PMI Final

1400 US ISM Manufacturing PMI

($1 = 4.2240 ringgit)

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(Reporting by Mei Mei Chu; Editing by Rashmi Aich)

((Meifong.chu@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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