Palm oil falls over 1 percent

Malaysian palm oil futures fell over 1 percent on Monday before paring some losses, as weakness in overnight soyaoil on the US Chicago Board of Trade (CBOT) and data showing declining exports weighed on sentiment. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was down 0.8 percent at 2,121 ringgit ($507.54) a tonne at the close, in its first day of trade.
Trading volumes stood at 46,016 lots of 25 tonnes each at the close. "The market likely fell tracking CBOT as it extended Friday's losses, along with weaker oils on China's Dalian Commodity Exchange," said a Kuala Lumpur-based trader, adding that palm oil export data released by cargo surveyors recently also weighed on the market.
Malaysian palm oil exports fell up to 4.7 percent in the first half of December versus the corresponding period of last month, according to data from inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services on Saturday.
Another cargo surveyor, Societe Generale de Surveillance, however reported on Monday a 7.5 percent gain in shipments for the same period.
"Exports for the full month of December could be up due to China's Lunar New Year demand, but I'm not sure whether China will buy more crude palm oil because of cold weather," added the trader.
Palm oil demand from China typically rises ahead of its Lunar New Year celebrations, taking place in early February next year, for cooking purposes. Palm oil demand, however, could be capped then, as colder temperatures at that time of the year solidifies the edible oil.
In other related oils, the Chicago January soyabean oil contract declined 1.2 percent on Friday as traders reacted to smaller-than-expected purchases by China and ballooning global supplies.
It was last down 0.04 percent on signs of easing trade tensions between Washington and Beijing.
Meanwhile, the January soyabean oil contract on the Dalian Commodity Exchange fell 0.3 percent and the Dalian January palm oil contract was up 0.1 percent. Palm oil prices are affected by changes in soyaoil prices, as they compete for a share in the global vegetable oil market.