February 6, 2018 / 5:37 AM / 5 months ago

VEGOILS-Palm dips tracking falls in global financial markets, profit-taking

    * Palm in line for third day of declines in four
    * Weaker ringgit could hold palm's downside - Trader
    * Palm oil neutral in 2,481-2,520 rgt/T range - Techs

    By Emily Chow
    KUALA LUMPUR, Feb 6 (Reuters) - Malaysian palm oil futures
eased on Tuesday, pulling back from the previous session's gains
and set for a third day of declines in four, tracking losses in
global financial markets and as traders booked profits. 
    Stock markets tumbled worldwide as investors fled from
equities, spooked by a sharp rise in U.S. bond yields following
data that showed U.S. wages increasing at the fastest pace since
2009. This raised concerns over higher inflation and potentially
higher interest rates.
    Malaysian shares plunged as much as 3.1 percent, in
their biggest intraday percentage drop since April 2013.

    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.3 percent
at 2,481 ringgit ($633.39) a tonne at the midday break. 
    It had gained nearly 1 percent in the previous session, but
had lost ground in the preceding two days.
    Trading volumes stood at 21,276 lots of 25 tonnes each.
    "The market is trading cautiously following broad-based
weakness in financials and commodities around the globe," said a
trader from Kuala Lumpur. 
    "Lingering weakness in the ringgit could, however, cushion
selling activity."
    Weakness in the ringgit, palm's currency of trade,
supports the vegetable oil by making it cheaper for holders of
foreign currencies. 
    The ringgit fell 0.4 percent against the dollar at 3.9130
around Tuesday noon, after having gained more than 3 percent
since the start of the year. 
    Profit-taking also contributed to the decline, said another
    Palm oil looks neutral in a range of 2,481-2,520 ringgit per
tonne, said Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade was up 0.25 percent, while
the May soybean oil on the Dalian Commodity Exchange
edged up 0.14 percent.
    In other related edible oils, the Dalian May palm oil
contract rose 0.87 percent. 
    Palm, soy and crude oil prices as of 0516 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8        0   +0.00       0       0       0
 MY PALM OIL       MAR8     2485   -9.00    2482    2505     320
 MY PALM OIL       APR8     2481   -8.00    2473    2504    9876
 CHINA PALM OLEIN  MAY8     5122  +44.00    5078    5138  269306
 CHINA SOYOIL      MAY8     5614   +8.00    5562    5628  229758
 CBOT SOY OIL      MAR8    32.59   +0.09   32.38   32.65    3890
 INDIA PALM OIL    FEB8   570.20   -0.60  569.20   570.5      84
 INDIA SOYOIL      FEB8    738.9   -1.85  738.45   740.7     990
 NYMEX CRUDE       MAR8    63.45   -0.70   63.29   63.64   59965
  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 = 3.9170 ringgit)
($1 = 64.2950 Indian rupees)
($1 = 6.2900 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
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