January 12, 2018 / 5:27 AM / 5 months ago

VEGOILS-Palm declines to near 2-week low on weaker related oils

    * Palm falls to 2,537 rgt/T, lowest since Jan 2
    * Stronger ringgit also weighs on palm - Trader
    * Palm may fall to 2,519 ringgit/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Jan 12 (Reuters) - Malaysian palm oil futures
fell nearly 1 percent on Friday, extending a sharp decline from
the previous session to hit their lowest in nearly two weeks, as
they tracked weakness in related edible oils and as the ringgit
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was down 0.9 percent
at 2,543 ringgit ($640.55) a tonne at the midday break, heading
for a second straight session of decline. Earlier in the
session, it fell to the weakest level since Jan. 2 at 2,537
    For the week, palm was down nearly 2 percent, in line for
its first weekly decline in three.
    Trading volumes stood at 17,564 lots of 25 tonnes each at
the midday break.
    "Palm is down on soyoil and Dalian palm olien. It is also
technically following through the selling from yesterday's weak
closing," said a Kuala Lumpur-based trader. 
    Palm dropped more than 2 percent on Thursday due to gains in
the ringgit, the tropical oil's currency of trade. 
    The ringgit has strengthened 11.5 percent against the dollar
since the start of 2017, and was up 0.4 percent at 3.9700 around
Friday noon.
    A stronger ringgit usually makes palm oil more expensive for
foreign buyers.  
    In related edible oils, the March soybean oil contract
 on the Chicago Board of Trade declined 0.9 percent in
overnight trade, and was last down 0.1 percent on Friday.
    The May soybean oil on the Dalian Commodity Exchange
fell 0.8 percent, while the Dalian January palm oil contract
 declined 1.2 percent. 
    Palm oil tracks the performance of other edible oils, as
they compete for a share in the global vegetable oils market.
    Palm oil may break a support at 2,555 ringgit per tonne, and
fall more to the next support at 2,519 ringgit, according to
Reuters market analyst for commodities and energy technicals
Wang Tao.
    Palm, soy and crude oil prices as of 0453 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8        0   +0.00       0       0       0
 MY PALM OIL       FEB8     2533  -30.00    2530    2546     255
 MY PALM OIL       MAR8     2543  -24.00    2537    2558    7392
 CHINA PALM OLEIN  MAY8     5270  -66.00    5250    5318  246994
 CHINA SOYOIL      MAY8     5740  -48.00    5730    5794  202002
 CBOT SOY OIL      MAR8    33.12   +0.00   33.08   33.21    2010
 INDIA PALM OIL    JAN8   557.00   -2.50  554.50     559     111
 INDIA SOYOIL      JAN8   740.85   -1.00   740.7   740.9     140
 NYMEX CRUDE       FEB8    63.61   -0.19   63.46   63.72   23883
  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 = 3.9700 ringgit)
($1 = 63.5050 Indian rupees)
($1 = 6.4810 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below