February 9, 2018 / 5:25 AM / 9 days ago

VEGOILS-Palm dips on overnight soyoil losses

    * Weaker ringgit may cap decline - trader
    * Market trading in a range pending data - trader
    * Palm oil neutral in 2,481-2,520 rgt/T range - Techs

    By Emily Chow
    KUALA LUMPUR, Feb 9 (Reuters) - Malaysian palm oil futures
slipped on Friday after two consecutive sessions of gains,
tracking overnight losses in U.S. soyoil.
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.3 percent
at 2,488 ringgit ($631.95) a tonne at the midday break. It has
gained 0.9 percent so far this week.
    Trading volumes stood at 14,461 lots of 25 tonnes each at
Friday noon.
    "Palm has been range trading, but is now down tracking
overnight weakness in the soyoil market," said a Kuala
Lumpur-based trader, adding that the market was awaiting data
from cargo surveyors and the Malaysian Palm Oil Board (MPOB). 
    "MPOB may paint a slight bullish picture," said the trader,
as production in January is widely expected to decline on-month,
in line with seasonal trend.
    Data from cargo surveyors is likely to show a drop in
exports in the coming weeks. 
    A cargo surveyor will report its export figures on Saturday,
while MPOB is scheduled to release its data on Monday. 
    Another trader said weakness in the ringgit, palm's
currency of trade, could cap declines in palm prices. 
    A weaker ringgit typically supports the vegetable oil by
making it cheaper for foreign buyers. The Malaysian currency had
weakened by 0.3 percent against the dollar to 3.9270 around
Friday noon.
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade was up 0.3 percent after
shedding over 1 percent on Thursday. 
    The May soybean oil on the Dalian Commodity Exchange
rose 0.3 percent, while the Dalian May palm oil contract
was up 0.4 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 Wang Tao, a Reuters market
analyst for commodities and energy technicals.
    
    Palm, soy and crude oil prices as of 0450 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8        0   +0.00       0       0       0
 MY PALM OIL       MAR8     2490   -8.00    2487    2495     135
 MY PALM OIL       APR8     2488   -7.00    2484    2495    5065
 CHINA PALM OLEIN  MAY8     5130  +20.00    5118    5158  205496
 CHINA SOYOIL      MAY8     5634  +18.00    5624    5664  170782
 CBOT SOY OIL      MAR8    32.31   +0.10   32.22   32.35    6844
 INDIA PALM OIL    FEB8   570.60   -1.80  570.40   571.6      68
 INDIA SOYOIL      FEB8    738.6   -1.40   738.6   738.6      10
 NYMEX CRUDE       MAR8    60.54   -0.61   60.36   60.67   32235
  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 = 3.9370 ringgit)
($1 = 64.3675 Indian rupees)
($1 = 6.3240 Chinese yuan) 

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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