VEGOILS-Palm logs 10% weekly fall on dismal exports, biggest drop in 10 months

  • Reuters
  • Commodities News
VEGOILS-Palm logs 10% weekly fall on dismal exports, biggest drop in 10 months

* Palm down for fifth day, logs 10% weekly drop

* Jan. 1-15 exports plunged 42%

* Sentiment has turned strongly bearish - analyst

(Updates with closing prices, adds details)

By Mei Mei Chu

KUALA LUMPUR, Jan 15 (Reuters) - Malaysian palm oil futures fell as much as 3% on Friday and logged their biggest weekly decline in 10 months, as cargo surveyors reported a steep plunge in exports in the first half of January.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange closed down 102 ringgit, or 2.9%, to 3,425 ringgit ($848.82) a tonne, its lowest since Dec. 23.

It plummeted 10.6% this week, the first weekly drop in five.

"Crude palm oil futures rebounded strongly at the opening but failed to see continuous buying on anxiety over mid-January exports," said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

Exports during Jan. 1-15 plunged 42% from the same period in December, cargo surveyors said. data was within market expectations, but sentiments have turned strongly bearish on palm futures, depressing cash prices along with it, Varqa said.

PT Pertamina, an Indonesian state energy company, said on Friday it had started trials on diesel made entirely out of palm oil at its Cilacap refinery on Java Island, after conducting trials on jet fuel late last year. most-active soyoil contract DBYc3 fell 2%, while its palm oil contract DCPc5 slipped 4%. Soyoil prices on the Chicago Board of Trade BOc2 were down 1.4%.

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

Anti-palm oil campaigns are hindering the industry's efforts to achieve sustainability certification and develop a market for certified sustainable palm oil, top palm oil producers said during the Reuters Next conference on Thursday. ($1 = 4.0350 ringgit)

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