April 26, 2018 / 5:28 AM / 3 months ago

VEGOILS-Palm edges higher on weaker ringgit before trimming gains

    * Palm hits one-week low of 2,389 rgt/T
    * Weaker ringgit, overnight losses on U.S. soyoil keep palm
in
range - Trader
    * Palm oil neutral in 2,392-2,415 rgt/T range

    By Emily Chow
    KUALA LUMPUR, April 26 (Reuters) - Malaysian palm oil
futures recovered from early losses on Thursday, buoyed by a
weaker ringgit, before trimming gains to trade flat by
the midday break.
    A weaker ringgit, palm's currency of trade, typically makes
the tropical oil cheaper for buyers holding foreign currencies. 
    The ringgit has shed 1.5 percent against the dollar since
the start of April, and was last down 0.2 percent at 3.9180
around noon on Thursday. 
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange was trading flat at
2,397 ringgit ($611.79) a tonne at the midday break. Earlier in
the session, it dropped to 2,389 ringgit, its lowest since April
18.     
    Palm had ended flat on Wednesday as it was range-trading on
lacklustre export data. 
    Trading volumes stood at 8,366 lots of 25 tonnes each at
noon.
    "Overnight weakness in soyoil is pressuring palm prices,"
said a futures trader from Kuala Lumpur, referring to U.S.
soyoil on the Chicago Board of Trade. 
    The Chicago July soybean oil contract ended 0.7
percent lower in the previous session, and was last trading flat
around 0512 GMT on Thursday.
    The trader added that while the absence of positive market
news could further dampen sentiment, palm could be supported by
the weakness in the ringgit.
    Malaysian palm oil shipments for April 1-25 fell 0.8-2.5
percent compared with the corresponding period last month,
according to data from independent inspection company AmSpec
Agri Malaysia and cargo surveyor Societe Generale de
Surveillance.
    Palm oil looks neutral in a range of 2,392-2,415 ringgit per
tonne, and an escape could suggest a direction, according to
Wang Tao, a Reuters market analyst for commodities and energy
technicals.
    In other related oils, the September soybean oil on China's
Dalian Commodity Exchange declined 0.2 percent, while
the Dalian September palm oil contract slightly rose 0.1
percent. 
    Palm oil is impacted by movements in rival edible oils as
they compete for a share in the global vegetable oils market.   
    
    Palm, soy and crude oil prices, as of 0438 GMT
 Contract           Month    Last  Change     Low   High  Volume
 MY PALM OIL       MAY8      2394   +3.00    2394   2396      52
 MY PALM OIL       JUN8      2399   +0.00    2392   2401    1018
 MY PALM OIL       JUL8      2397   +0.00    2389   2400    3268
 CHINA PALM OLEIN  SEP8      4994   +6.00    4950   4998  238526
 CHINA SOYOIL      SEP8      5762  -10.00    5710   5772  329978
 CBOT SOY OIL      JUL8     31.06   +0.01   31.02  31.16    2713
 INDIA PALM OIL    APR8    649.00   -0.80  645.60  650.3      17
 INDIA SOYOIL      MAY8         0   +0.00       0      0       0
 NYMEX CRUDE       JUN8     68.40   +0.35   67.96  68.46   31567
  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 = 3.9180 ringgit)
($1 = 66.7800 Indian rupees)
($1 = 6.3232 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 
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