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VEGOILS-Palm drops 1 pct on stronger ringgit, weaker soyoil
November 10, 2017 / 6:03 AM / a month ago

VEGOILS-Palm drops 1 pct on stronger ringgit, weaker soyoil

    * Palm posts biggest intraday pct drop in 3 weeks
    * Palm heads for second consecutive weekly decline

    By Emily Chow
    KUALA LUMPUR, Nov 10 (Reuters) - Malaysian palm oil futures
fell 1 percent on Friday in their biggest intraday percentage
drop in three weeks, weighed down by a stronger ringgit and
weaker soyoil prices.
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.9 percent at 2,784 ringgit ($664.12) a tonne at the midday
break. Earlier in the session, it dropped as much as 1.1 percent
in its sharpest decline since Oct. 19.
    It has shed 0.8 percent so far this week in what could be
its second straight weekly decline.  
    Traded volumes stood at 20,164 lots of 25 tonnes each at
Friday noon.
    "Today's market decline is in line with the external market,
following the U.S. Department of Agriculture (USDA) crop
report," said a futures trader from Kuala Lumpur.
    The USDA raised its corn crop forecast to 14.578 billion
bushels, based on an average yield of 175.4 bushels per acre
(bpa), which, if realised, would top a record set last year.

    The December soybean oil contract on the Chicago
Board of Trade fell as much as 0.6 percent after the USDA crop
report showed unexpectedly high corn yields.
    In other related oils, the January soybean oil contract on
the Dalian Commodity Exchange was down 1 percent, while
the January palm olein contract dropped 1 percent.
    Palm oil is impacted by other edible oils as they compete
for a share of the global vegetable oils market.
    The continued appreciation of the ringgit also
dragged down palm oil, said another trader. 
    A stronger ringgit makes the edible oil more expensive for
foreign currency holders. 
    The ringgit, palm's currency of trade, rose to its strongest
against the dollar in nearly two months and was last up 0.3
percent at 4.1920 per dollar.   
   
    Palm, soy and crude oil prices at 0532 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       NOV7     2732  -15.00    2730   2736       28
 MY PALM OIL       DEC7     2764  -22.00    2756   2770      612
 MY PALM OIL       JAN8     2784  -25.00    2777   2793     9061
 CHINA PALM OLEIN  JAN8     5624  -54.00    5606   5698   176464
 CHINA SOYOIL      JAN8     6090  -54.00    6084   6152   176588
 CBOT SOY OIL      DEC7    34.94   -0.20    34.9  35.16     2985
 INDIA PALM OIL    NOV7   568.80   +2.30  563.70  569.8      318
 INDIA SOYOIL      NOV7   699.45   -1.15  697.65    700      970
 NYMEX CRUDE       DEC7    57.11   -0.06   56.97  57.12    10945
 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 = 4.1920 ringgit)
($1 = 65.0250 Indian rupees)
($1 = 6.6349 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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