Malaysian crude palm oil fell to a one-week low on Friday as an outlook for improved weather in the US sparked some selling in grain markets in the previous session that extended to the Asian vegetable oil complex. The tropical oil has lost 14 percent so far this year as weak exports, prospects of better output in the second half and ample soy supplies from South America have weighed on sentiment.
"Palm oil is trading lower on the external markets although the declines have slowed as there are expectations of slightly better exports in April," said a trader with a foreign commodities brokerage. By midday, the benchmark July crude palm oil on Bursa Malaysia Derivatives Exchange traded 1.3 percent lower at 3,250 ringgit ($1,096) after falling as low as 3,237 ringgit - a level not seen since April 19.
Traders are waiting for Malaysia's April palm oil export data, which may edge higher after four months of straight declines. Data from surveyor ITS is due to be issued over the weekend while cargo surveyors will release their figures on Tuesday. Crude fell from a 31-month high in the previous session on concerns that slowing growth in top consumer United States may pare demand, which also weighed on grains and vegetable oil markets.
US wheat futures lost more ground on Friday, dropping around half a percent to a two-week low as outlook of improved weather in parched US winter crop area prompted funds to liquidate positions. Chicago soyoil for May delivery rebounded 1.1 percent in Asian trade after recording losses the day before, moving in tandem with soybeans. The most-active January 2012 Dalian soyoil contract dropped 1.8 percent.