JAKARTA (Nov 7): Malaysian palm oil futures fell for a fourth consecutive session on Friday as traders squared positions ahead of anticipated bearish stocks and export data due out on Monday.
"We are in anticipation of a bearish figure," a trader with a foreign commodities brokerage in Kuala Lumpur told Reuters.
Data on Malaysian palm oil stocks due out next week are expected to be high, pushing some traders to square off positions to avert an anticipated decline in prices.
A Reuters survey of planters, traders and analysts on Thursday showed that Malaysian palm oil stocks likely rose further to a 19-month high of 2.16 million tonnes at the end of October, as exports dipped.
"Some people might take this opportunity to square their position and not take any risks before such a big report," said another trader with foreign commodities brokerage in Kuala Lumpur. "Why risk the big report you know and get myself hurt?"
By Friday's close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange had slipped 1.22 percent to 2,195 ringgit ($656.20) per tonne, reversing gains hit earlier in the day.
The contract ended the week down 4.8 percent after two weeks of gains, its biggest weekly drop since mid August.
Total traded volume on Friday stood at 59,182 lots of 25 tonnes, above the average 35,000 lots.
Technicals showed if palm prices heading toward the 2,177 ringgit level having broken through the a support at 2,222 ringgit, said Reuters market analyst Wang Tao.
Despite the declining prices this week, lower production is expected to support palm before the end of the year, an analyst said.
"We maintain our bullish view on CPO price. We have the target price of 2,500 (ringgit) in 2015. The reason is we believe inventory has peaked in October, and production will decline in November," Alan Lim, an analyst at Kenanga Investment Bank, told Reuters.
Brent crude oil fell below $83 a barrel on Friday after the dollar hit a four-year high and supplies of high quality, light crude continued to overwhelm demand in many markets.
The most active May soybean oil contract on the China's Dalian Commodities Exchange rose 1.13 percent, while the U.S. soyoil contract for December edged down 0.1 percent in early Asian trade.
Malaysian currency edged down about 0.3 percent to 3.340 ringgit against the U.S. dollar on Friday. Palm, soy and crude oil prices at 1043 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV4 2190 -27.00 2190 2215 205 MY PALM OIL DEC4 2202 -27.00 2198 2255 2382 MY PALM OIL JAN5 2195 -26.00 2193 2252 31319 CHINA PALM OLEIN MAY5 5336 +56.00 5252 5368 793754 CHINA SOYOIL MAY5 5920 +66.00 5844 5950 504216 CBOT SOY OIL DEC4 32.45 -1.70 32.37 32.83 7470 INDIA PALM OIL NOV4 448.50 -1.70 447.30 452.40 542 INDIA SOYOIL NOV4 587.10 -0.90 584.80 590.00 18055 NYMEX CRUDE DEC4 78.07 +0.16 77.47 78.25 21116 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil and RBD palm olein in Chinese yuan per tonne India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel ($1 = 3.3450 Malaysian ringgit) ($1 = 6.1159 Chinese yuan) ($1 = 61.4900 Indian rupee)