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VEGOILS-Palm falls 3%, ends longest winning streak in 19 years

VEGOILS-Palm falls 3%, ends longest winning streak in 19 years

· 03/16/2021 07:13
VEGOILS-Palm falls 3%, ends longest winning streak in 19 years

March 1-15 exports decline 1% on month - SGS

March production seen rising sharply - traders

Recasts with closing prices, adds quotes

By Mei Mei Chu

- Malaysian palm oil futures reversed early gains on Tuesday and ended a nine-day rally, dragged by weaker prices of rival soyoil and expectations of a sharp recovery in production.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange closed down 120 ringgit, or 3%, at 3,900 ringgit ($948.44) a tonne.

Palm eased from a 13-year high hit in the previous session, and ended their longest winning streak since June 2002.

The Southern Peninsula Palm Oil Millers' association had forecast production during March 1-15 to fall 62% from the previous month, traders said.

Exports of Malaysian palm oil products for March 1-15 fell 1% to 549,273 tonnes from the same period in February, according to data from Societe Generale de Surveillance. nAZN00Z26Q

"This is a drastic improvement from March 1-10, which showed a decline of 22%," said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

"Improving production in Malaysia in March may reverse some of the price gains this week."

European Union palm oil imports in the 2020/21 season that started last July reached 3.87 million tonnes, compared with 4.01 million a year earlier, data published by the European Commission showed on Monday. nP6N2JT00J

Dalian's most-active soyoil contract DBYcv1 fell 0.3% and its palm oil contract DCPcv1 declined 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 dropped 0.8%.

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



($1 = 4.1120 ringgit)



(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips, Subhranshu Sahu and Amy Caren Daniel)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E