January 11, 2018 / 5:45 AM / 2 months ago

VEGOILS-Palm drops over 1 pct on stronger ringgit

    * Overnight fall in CBOT soyoil also weighs on prices
    * Mkt to trade rangebound until clear export trend out -
    * Palm may retest support at 2,577 ringgit/tonne -

    By Emily Chow
    KUALA LUMPUR, Jan 11 (Reuters) - Malaysian palm oil futures
fell over 1 percent in early trade on Thursday, as a stronger
ringgit and overnight falls in soyoil on the Chicago
Board of Trade weighed on the market.
    Gains in the ringgit, palm's currency of trade, usually
makes the tropical oil more expensive for foreign buyers. The
ringgit had strengthened 0.4 percent to 3.9880 per dollar by
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was down 1.1 percent
at 2,594 ringgit ($650.45) a tonne at the midday break.
    Trading volumes stood at 15,067 lots of 25 tonnes each at
the midday break.
    "Palm is down mirroring weakness in overnight soyoil and
current strength in the ringgit," said a trader from Kuala
    Another trader said higher inventories also weighed on the
market, which would trade rangebound until export data indicated
a clearer trend.  
    Data from cargo surveyor Societe Generale de Surveillance
showed Malaysian palm oil exports during Jan. 1-10 rose 12.2
percent from a month earlier, while Intertek Testing Services
said shipments declined 1.4 percent during the same period.

    Inventories at the end of December rose 7 percent on month
to a more than two-year high of 2.7 million tonnes, industry
regulator Malaysian Palm Oil Board said on
    In related oils, the March soybean oil contract on
the Chicago Board of Trade dropped 0.7 percent in the previous
session, but was up 0.2 percent on Thursday.
    Meanwhile, the May soybean oil on the Dalian Commodity
Exchange was down 0.2 percent, while the Dalian January
palm oil contract declined 0.2 percent. 
    Palm oil tracks the performance of other edible oils, as
they compete for a share in the global vegetable oils market.
    The palm oil third-month contract may retest a support at
2,577 ringgit per tonne, said Reuters market analyst for
commodities and energy technicals Wang Tao.
    Palm, soy and crude oil prices as of 0508 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8     2534  -34.00    2534    2557       2
 MY PALM OIL       FEB8     2594  -28.00    2592    2608     634
 MY PALM OIL       MAR8     2594  -28.00    2589    2613    7312
 CHINA PALM OLEIN  MAY8     5330  -10.00    5320    5354  147058
 CHINA SOYOIL      MAY8     5782  -14.00    5772    5816  151002
 CBOT SOY OIL      MAR8    33.51   +0.03   33.39   33.54    2500
 INDIA PALM OIL    JAN8   561.10   -1.10  560.40   561.7     125
 INDIA SOYOIL      JAN8      743   -1.95     743  743.05      80
 NYMEX CRUDE       FEB8    63.49   -0.08   63.44   63.62   25883
  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 = 3.9880 ringgit)
($1 = 63.7625 Indian rupees)
($1 = 6.5160 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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