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VEGOILS-Palm snaps three sessions of gains on weaker related oils
August 11, 2017 / 6:21 AM / in 3 months

VEGOILS-Palm snaps three sessions of gains on weaker related oils

    * Erases gains made in the previous three sessions
    * Market also down on prospect of rising output - Trader

    By Emily Chow
    KUALA LUMPUR, Aug 11 (Reuters) - Malaysian palm oil futures
traded lower on Friday, snapping three consecutive sessions of
gains, weighed down by rising output and weaker performances in
related oils. 
    The benchmark palm oil contract for October delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.8 percent at 2,643 ringgit ($615.51) at the midday break. 
    Traded volumes stood at 29,429 lots of 25 tonnes each at
noon.
    "Palm erased three straight days of gains following
overnight weakness in soy after a bearish U.S. Department of
Agriculture (USDA) report," said a futures trader from Kuala
Lumpur.
    The USDA pegged higher than previously forecast soybean
yields, implying larger-than-expected harvests and surprising
analysts who expected a reduction on the back of planting delays
and dry conditions in parts of the Midwest.
    The trader said the market could start reacting to
expectations of a further rise in production.     
    Malaysia's palm oil stocks at end-July rose 16.8 percent to
1.78 million tonnes from the previous month, versus a Reuters
poll which forecast a 6.5 percent rise in inventory levels,
according to data from industry regulator the Malaysian Palm Oil
Board on Thursday.
    The official data also showed July output rising 20.7
percent to 1.83 million tonnes, compared with an outlook for a
11 percent gain to 1.68 million tonnes.
    In other related oils, the October soybean oil contract
 on the Chicago Board of Trade slipped as much as 0.3
percent, while the January soybean oil on the Dalian Commodity
Exchange lost up to 0.9 percent. 
    The January palm olein contract dipped as much as
by 0.4 percent.
    
 Palm, soy and crude oil prices at 0543 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       AUG7        0   +0.00       0       0       0
 MY PALM OIL       SEP7     2631  -25.00    2626    2635     764
 MY PALM OIL       OCT7     2643  -20.00    2632    2647   10371
 CHINA PALM OLEIN  JAN8     5378  -22.00    5346    5504  724682
 CHINA SOYOIL      JAN8     6258  -22.00    6218    6426  723842
 CBOT SOY OIL      DEC7    34.16   +0.00   34.04   34.41    8183
 INDIA PALM OIL    AUG7   491.60   -3.30  490.50   493.9     419
 INDIA SOYOIL      AUG7    639.2   -4.10     637   640.5    1730
 NYMEX CRUDE       SEP7    48.21   -0.38   48.10   48.69   57849
 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 = 4.2940 ringgit)
($1 = 64.2350 Indian rupees)
($1 = 6.6709 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 

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