February 8, 2018 / 5:20 AM / in 9 months

VEGOILS-Palm declines on overnight U.S. soyoil losses, slow demand

    * Weaker ringgit may lend support - Trader
    * Palm oil neutral in 2,481-2,520 rgt/T range - Techs
    * Export data scheduled for release on Feb. 10

    By Emily Chow
    KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil futures
fell in early trade on Thursday, coming off a one-week high hit
in the previous session, tracking overnight losses in related
edible oils and as demand remained weak.
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.4 percent
to 2,476 ringgit ($630.99) a tonne at the midday break. 
    Trading volumes stood at 15,137 lots of 25 tonnes each.
    "Palm is down today on poor demand and the weak external
market," said a trader in Kuala Lumpur, referring to overnight
losses in soyoil on the U.S. Chicago Board of Trade.
    "These two weeks will be quiet in terms of buying," the
trader added. 
    Malaysian palm oil shipments are forecast to decline 8
percent in January to 1.31 million tonnes, according to a
Reuters poll.
    Export data from a cargo surveyor for the Feb. 1-10 period
is scheduled for release on Saturday. 
    The current depreciation in the ringgit could,
however, lend support to palm and limit selling, another trader
said.
    A weaker ringgit, palm's currency of trade, supports the
vegetable oil by making it cheaper for foreign buyers. It eased 
0.4 percent against the dollar to 3.9230 around noon on
Thursday.  
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade declined 1.8 percent on
Wednesday, in line with soybean futures which fell as traders
squared positions ahead of a monthly report due Thursday from
the U.S. Department of Agriculture.
    It was last up 0.2 percent. 
    The May soybean oil on the Dalian Commodity Exchange
was down 0.4 percent while the Dalian May palm oil contract
 fell 0.2 percent.     
    Palm oil prices are impacted by other rival edible oils, as
they compete for a share in the global vegetable oils market. 
    Palm oil looks neutral in a narrow range of 2,481-2,520
ringgit per tonne, according to said Wang Tao, a Reuters market
analyst for commodities and energy technicals.
    
    Palm, soy and crude oil prices as of 0502 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2474   -8.00    2474    2474       5
 MY PALM OIL       MAR8     2475  -11.00    2471    2496     809
 MY PALM OIL       APR8     2476   -9.00    2470    2497    7593
 CHINA PALM OLEIN  MAY8     5108  -10.00    5062    5122  191518
 CHINA SOYOIL      MAY8     5612  -24.00    5566    5638  196798
 CBOT SOY OIL      MAR8     32.6   +0.04   32.59   32.71    3905
 INDIA PALM OIL    FEB8   570.40   -0.90  569.50   570.8      63
 INDIA SOYOIL      FEB8    738.5   -1.85   737.8  738.85     910
 NYMEX CRUDE       MAR8    61.49   -0.30   61.33   61.76   49970
  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 = 3.9240 ringgit)
($1 = 64.2725 Indian rupees)
($1 = 6.3287 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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