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VEGOILS-Palm oil dips on weaker related oils, market correction
July 13, 2017 / 6:12 AM / 5 months ago

VEGOILS-Palm oil dips on weaker related oils, market correction

    * Palm up 0.4 pct for the week so far
    * Market drop at midday sharpest in 3 weeks
    * Palm may slide more to 2,551 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, July 13 (Reuters) - Malaysian palm oil futures
fell in early trade on Thursday and were set for a third
straight session of losses, tracking weaker edible oils such as
soyoil on the Chicago Board of Trade (CBOT).
    Declines in soyoil and palm olein on China's Dalian
Commodity Exchange also weighed on palm prices.
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange fell 0.7
percent to 2,563 ringgit ($597.85) at the midday break, its
sharpest drop so far since June 21. 
    Traded volumes stood at 15,605 lots of 25 tonnes each at
noon on Thursday.
    "The market is seeing some downside correction on weakness
in soybean oil and China's palm olein," said a futures trader
from Kuala Lumpur.
    Palm take cues from movements in related edible oils, as
they compete for a share in the global vegetable oils market. 
    It had climbed to its highest in seven weeks during
Tuesday's trade before it fell tracking CBOT and Dalian soyoil,
and is up 0.4 percent for the week so far.
    The December soybean oil contract on the Chicago
Board of Trade declined 1 percent on Thursday, in line with the
drop in soybean prices which fell on the back of profit taking
after dry weather in the U.S. caused a rally. 
    In other related oils, the September soybean oil on the
Dalian Commodity Exchange was down 0.9 percent, while
the September palm olein dropped 0.8 percent.
    The palm oil September contract may slide more to 2,551
ringgit per tonne, according to Reuters market analyst for
commodities and energy technicals Wang Tao.  
    
  Palm, soy and crude oil prices at 0550 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       JUL7     2665  -14.00    2665   2665        8
 MY PALM OIL       AUG7     2615  -13.00    2601   2616     1398
 MY PALM OIL       SEP7     2563  -18.00    2555   2570     7994
 CHINA PALM OLEIN  SEP7     5454  -42.00    5432   5508   285134
 CHINA SOYOIL      SEP7     6098  -52.00    6070   6160   276136
 CBOT SOY OIL      DEC7    33.68   -0.31    33.6  33.95     6800
 INDIA PALM OIL    JUL7   484.70   -4.30  483.80    488      303
 INDIA SOYOIL      JUL7    639.6   -3.95  639.25    641      780
 NYMEX CRUDE       AUG7    45.38   -0.11   45.24  45.54    22208
 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 = 4.2870 ringgit)
($1 = 64.4300 Indian rupees)
($1 = 6.7781 Chinese yuan)   

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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