December 29, 2017 / 5:23 AM / 6 months ago

VEGOILS-Palm down on weaker overnight soyoil, high end-stocks

    * Palm set up for second day of declines
    * Palm has shed nearly 20 percent in 2017
    * Market could hold on falling output, better demand -trader

    By Emily Chow
    KUALA LUMPUR, Dec 29 (Reuters) - Malaysian palm oil fell on
Friday, headed for a second day of decline, as it tracked losses
in overnight soyoil on the Chicago Board of Trade. 
    The market was also dragged down by high inventories, but
could hold near current levels on expectations of improving
demand and weaker output, said a trader.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange fell 0.5 percent to
2,509 ringgit ($618.44) a tonne at the midday break. 
    Palm oil prices have been trending downwards since November,
after India raised import taxes on edible oils to their highest
in more than a decade, cutting demand. 
    Palm oil futures have lost 3.6 percent so far in December,
and have also shed nearly 20 percent in 2017.
    Trading volumes on Friday were thin at 8,909 lots of 25
tonnes each by the midday break.
    "The market is down on overnight soyoil, but seen holding
well at current levels as we are looking at better exports and
falling production," said a Kuala Lumpur-based trader. 
    "But December's end-stocks (are expected to) be the highest
of the year," he said, and that has been putting pressure on
prices this month. 
    Palm oil shipments from Malaysia, the world's second largest
producer after Indonesia, rose about 1 percent during Dec. 1-25
versus a month earlier, showed data released by cargo surveyors
Intertek Testing Services (ITS) and Societe Generale de
Surveillance (SGS). 
    Demand is expected to improve in the coming weeks as key
buyer China stocks up ahead of Lunar New Year celebrations. 
    Malaysian palm oil production is seen declining through the
first quarter of next year, in line with seasonal trends. Output
fell 3.3 percent to 1.94 million tonnes in November.
MYPOMP-CPOTT
    In other edible oils, the March soybean oil contract
on the Chicago Board of Trade dropped 1.7 percent in its
previous session, and was last up 0.2 percent. 
    The May soybean oil on the Dalian Commodity Exchange
was down 0.8 percent, while the Dalian January palm oil contract
 fell 0.2 percent. 
    
    Palm, soy and crude oil prices as of 0448 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8     2437  -22.00    2430    2437     212
 MY PALM OIL       FEB8     2483  -13.00    2470    2486    1783
 MY PALM OIL       MAR8     2509  -12.00    2495    2512    5897
 CHINA PALM OLEIN  MAY8     5230  -12.00    5204    5254  167998
 CHINA SOYOIL      MAY8     5658  -46.00    5644    5702  192146
 CBOT SOY OIL      MAR8    32.79   +0.11   32.71   32.87    3821
 INDIA PALM OIL    DEC7   555.00   +0.00  554.30     555      59
 INDIA SOYOIL      JAN8      720   -1.55     719   720.5     700
 NYMEX CRUDE       FEB8    60.26   +0.42   59.82   60.32   43761
  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 = 4.0570 ringgit)
    ($1 = 63.9950 Indian rupees)
    ($1 = 6.5155 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Tom Hogue)
  
 
 
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