December 19, 2017 / 5:02 AM / a month ago

VEGOILS-Palm drops over 1 pct at midday break on high stocks, weak demand

    * Palm in line for second day of declines
    * Weaker overnight U.S. soy, China Dalian also weigh on
market -
trader
    * Dec 1-20 cargo surveyor data from ITS, SGS due Wednesday

    By Emily Chow
    KUALA LUMPUR, Dec 19 (Reuters) - Malaysian palm oil futures
were down over 1 percent at midday on Tuesday as high end-stocks
and sluggish demand dented sentiment while weakness in related
edible oils compounded the decline.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was down 1.3 percent
at 2,496 ringgit ($612.97) at the midday break, in line for a
second straight day of losses. 
    Palm had been on a downward trend on weak demand and high
stockpiles before jumping nearly 3 percent to reach its highest
levels in a week last Friday.
    Trading volumes stood at 19,491 lots of 25 tonnes each at
noon on Tuesday.
    "Storage tanks are full and there is no demand," said a
Kuala Lumpur-based trader.
    Inventory levels in Malaysia, the world's second largest
palm oil producer after Indonesia, climbed to their highest in
nearly two years at end-November. 
    Stockpiles rose 16 percent to 2.56 million tonnes, official
government data showed last week, while demand fell nearly 12
percent to 1.35 million tonnes in November. MYPOMS-TPO
MYPOME-PO
    Cargo surveyor data for Malaysian palm oil shipments for the
Dec. 1-20 period is scheduled for release on Wednesday after
0300 GMT.  
    Another futures trader added that overnight weakness in
soyoil on the Chicago Board of Trade and current losses in palm
olein on China's Dalian Commodity Exchange could hamper any
attempt at recovery in Malaysian palm oil.
    Palm oil prices are impacted by the movements of other
edible oils, as they compete for a share in the global vegetable
oils market.
    The January soybean oil contract on the Chicago Board
of Trade saw a 0.4 percent decline in its previous trading
session, but was last up 0.2 percent on Tuesday.  
    The May soybean oil contract on the Dalian Commodity
Exchange fell 1 percent, while the Dalian January palm
olein contract declined 0.7 percent.

    Palm, soy and crude oil prices at 0455 GMT
 Contract          Month    Last  Change     Low   High  Volume
 MY PALM OIL       JAN8     2442  -26.00    2442   2462     707
 MY PALM OIL       FEB8     2470  -29.00    2469   2487    3553
 MY PALM OIL       MAR8     2496  -32.00    2496   2517    7511
 CHINA PALM OLEIN  MAY8     5248  -38.00    5242   5290  160488
 CHINA SOYOIL      MAY8     5770  -58.00    5768   5828  207180
 CBOT SOY OIL      JAN8    33.05   +0.03   33.05  33.15    1338
 INDIA PALM OIL    DEC7   559.30   -3.30  558.00  560.1      67
 INDIA SOYOIL      DEC7        0   +0.00       0      0       0
 NYMEX CRUDE       JAN8    57.29   +0.13   57.16  57.35     554
  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 = 4.0720 ringgit)
($1 = 64.1400 Indian rupees)
($1 = 6.6150 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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