VEGOILS - Palm oil falls for the fourth time in a row, indicating a weakening of Dalian palm oils

Malaysian palm futures fell for the fourth consecutive session on Tuesday. This was due to the weakness of Dalian palm oils, as market participants assessed the flooding situation in Malaysia, the second largest palm oil producer in the world.

By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was down 30 Ringgit or 0.74% at 4,025 Ringgit ($973.87) per metric ton.

Today, Malaysia crude palm futures are trading at a tight range. Traders are monitoring the performance of Dalian palm oil, and reviewing the flood situation. Kuala Lumpur based trader: "So far, heavy rains have only affected northern Malaysia."

The National Disaster Agency said that flooding in seven Malaysian states has affected more than 11,000 people.

Dalian's palm oil contract fell by 1.51%, while the most active soyoil contract dropped 0.24%. Chicago Board of Trade soyoil prices were up by 0.1%.

Palm oil follows the price changes of rival edible oils as it competes to gain a share in the global vegetable oils markets. The ringgit (palm's trade currency) strengthened by 0.14% against dollar, increasing the price of the commodity for buyers with foreign currencies.

Later in the day, cargo surveyors will publish their export data for November 1-25.

Wang Tao, a technical analyst, predicted that palm oil could bounce between 4,102 and 4,145 ringgits per ton after stabilising around 4,034 ringgits.

(source: Reuters)