December 28, 2017 / 5:32 AM / 6 months ago

VEGOILS-Palm drops on high inventory, subdued related edible oils

    * Market up 3.3 percent on week
    * Future production seen declining - trader

    By Emily Chow
    KUALA LUMPUR, Dec 28 (Reuters) - Malaysian palm oil futures
declined in early trade on Thursday, after hitting their highest
level in more than a week in the previous session, as ample
supplies dented sentiment. 
    Other related edible oils were trading largely flat, with
March soybean oil contract on the Chicago Board of Trade
and May soybean oil on the Dalian Commodity Exchange
edging up 0.1 percent each.
    The Dalian January palm oil contract was up 0.4
    Palm oil prices are also impacted by movements in other
edible oils, as they compete for a share of the global vegetable
oils market.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange fell 0.3 percent at
2,531 ringgit ($621.10) a tonne at the midday break. 
    It had risen to its highest level in over a week in the
previous session, and is up 3.3 percent for the week.
    Trading volumes were thin at 6,931 lots of 25 tonnes each at
the midday break.
    "Soyoil on China's Dalian Commodity Exchange and the Chicago
Board of Trade are only slightly up, and year-end stocks are
still very high," said a futures trader from Kuala Lumpur.
    "Palm's prices can't go up very high ... though next month's
production will be down."
    Palm oil production is set for a decline until the first
quarter of next year, in line with seasonal trend. It fell 3.3
percent to 1.94 million tonnes in November. MYPOMP-CPOTT
    Prices of the tropical oil however have slumped since the
start of November on the back of rising inventory levels and
weak demand. Exports from Malaysia fell 11.9 percent to 1.35
million tonnes in November, but has improved so far in December.
    Demand rose about 1 percent during Dec. 1-25 versus a month
earlier, data released by cargo surveyors Intertek Testing
Services (ITS) and Societe Generale de Surveillance (SGS) showed
on Tuesday. 
    Palm, soy and crude oil prices as of 0501 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8     2468   -6.00    2440    2468      59
 MY PALM OIL       FEB8     2503   -8.00    2480    2505     567
 MY PALM OIL       MAR8     2531   -7.00    2513    2533    4426
 CHINA PALM OLEIN  MAY8     5244  +22.00    5218    5262  202768
 CHINA SOYOIL      MAY8     5694   +4.00    5680    5734  195784
 CBOT SOY OIL      MAR8    33.31   +0.05   33.08   33.32    2747
 INDIA PALM OIL    DEC7   555.10   +0.30  554.90   555.7      24
 INDIA SOYOIL      JAN8    721.8   +0.20     721   722.2     930
 NYMEX CRUDE       FEB8    59.76   +0.12   59.52   59.79   15033
  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 = 4.0750 ringgit)
($1 = 64.1750 Indian rupees)
($1 = 6.5420 Chinese yuan)

 (Reporting by Emily Chow; Editing by Vyas Mohan)
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