March 27, 2018 / 5:16 AM / 4 months ago

VEGOILS-Palm declines on stronger ringgit, production outlook

    * Palm trading at one-week lows
    * Malaysia March, April output seen rising - trader

    By Emily Chow
    KUALA LUMPUR, March 27 (Reuters) - Malaysian palm oil
futures fell in early trade on Tuesday, trading near one-week
lows, as a stronger ringgit and expectations of a rise in
production in the coming months weighed on the edible oil's
prices.
    The benchmark palm oil contract for June delivery
on the Bursa Malaysia Derivatives Exchange was down 0.6 percent
to 2,419 ringgit ($624.74) a tonne at the midday break. It
earlier fell to 2,413 ringgit, near a one-week low hit in the
previous session.  
    Trading volumes stood at 14,310 lots of 25 tonnes each at
the midday break.    
    "The market is down on a stronger ringgit," said a palm oil
futures trader. 
    "Production in March and April is also expected to be high."
    Gains in the ringgit, palm oil's currency of trade,
typically weighs on the tropical oil as it makes it more
expensive for holders of foreign currencies. 
    The ringgit strengthened 0.6 percent against the dollar
around noon on Tuesday to 3.8720, its strongest level in two
months.
    Expectations of higher production for the full month of
March and April are also pressuring palm's prices. Output of the
edible oil usually gains seasonally around the second quarter of
the year before peaking in the third quarter. MYPOMP-CPOTT
    Malaysia's full-year output is seen rising to 20.5 million
tonnes in 2018, its highest level on record, as crops shake off
the lingering effects of a dry weather El Nino phenomenon and as
young trees come to maturity and increase harvested areas.
 
    In other related oils, the Chicago Board of Trade's May
soybean oil contract rose 0.2 percent, while the May
soybean oil on China's Dalian Commodity Exchange edged
0.1 percent higher. 
    The Dalian May palm oil contract was up 0.3 percent.
    Palm oil prices are impacted by movements in rival edible
oils as they compete in the global vegetable oils market.    

    Palm, soy and crude oil prices as of 0457 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       APR8        0   +0.00       0       0     112
 MY PALM OIL       MAY8     2421  -16.00    2418    2428    1874
 MY PALM OIL       JUN8     2419  -15.00    2413    2425    5870
 CHINA PALM OLEIN  SEP8     5084  +16.00    5062    5122  218894
 CHINA SOYOIL      SEP8     5810   +2.00    5790    5902  443910
 CBOT SOY OIL      MAY8    31.51   +0.05   31.36   31.57    3349
 INDIA PALM OIL    MAR8   639.50   -1.50  639.40   640.5      83
 INDIA SOYOIL      APR8    776.1   -1.70   776.1  777.35     640
 NYMEX CRUDE       MAY8    65.84   +0.29   65.49   65.98   30522
  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 = 3.8720 ringgit)
($1 = 64.7675 Indian rupees)
($1 = 6.2570 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Amrutha Gayathri)
  
 
 
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