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VEGOILS-Palm extends decline on expectation of higher inventories
August 30, 2017 / 5:46 AM / 22 days ago

VEGOILS-Palm extends decline on expectation of higher inventories

    * Palm futures down 0.1 pct at midday break
    * Fundamental looks bearish, says trader
    * Malaysian market closed on Thursday, Friday

    By Fransiska Nangoy
    JAKARTA, Aug 30 (Reuters) - Malaysian palm oil futures fell
slightly in the morning session on Wednesday, heading for a
fourth straight session of decline, on expectations of a rise in
inventories. 
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.1 percent at 2,710 ringgit ($634.96) at the midday break,
after hitting its lowest since Aug. 21 at 2,708 ringgit earlier
in the session. It has shed 2.6 percent after touching a
five-month high last week.
    Traded volumes stood at 16,992 lots of 25 tonnes each at
Wednesday noon.
    "People are concerned that fundamental is looking bearish.
August stocks are expected to come up," said a trader in Kuala
Lumpur.
    Palm inventories in August are seen higher as exports are
expected to fall from the previous month while production is
likely to be higher, the trader said.
    Exports of palm oil during Aug. 1-25 fell by 8.1 percent
from the same period in the previous month, according to cargo
surveyor Intertek Testing Services.
    Meanwhile, some traders also sold to consolidate positions
ahead of a long weekend in Malaysia. 
    The Bursa Malaysia Derivatives Exchange market will be
closed on Thursday and Friday for public holidays. 
    The October soybean oil contract on the Chicago Board
of Trade was little changed, while January soybean oil on the
Dalian Commodity Exchange dropped 0.4 percent.
    In related vegetable oils, the January palm olein contract
 on Dalian declined 0.3 percent.
    Palm oil may drop to 2,687 ringgit per tonne, as it has
temporarily peaked around a key resistance at 2,759 ringgit,
according to Reuters market analyst for commodities and energy
technicals Wang Tao.
    
 Palm, soy and crude oil prices at 0507 GMT
    
 Contract          Month  Last   Change  Low    High    Volume
 MY PALM OIL       7-Sep   2670     -10   2670    2694     152
 MY PALM OIL       7-Oct   2698      -7   2697    2718     903
 MY PALM OIL       7-Nov   2710      -3   2708    2728    8093
 CHINA PALM OLEIN  8-Jan   5490     -14   5462    5534  347088
 CHINA SOYOIL      8-Jan   6310     -26   6292    6348  240446
 CBOT SOY OIL      7-Dec  34.68     0.4  34.61   34.91    4554
 INDIA PALM OIL    7-Aug  517.4     0.4    517   517.8      21
 INDIA SOYOIL      7-Sep  655.9    1.65    654  656.15    2060
 NYMEX CRUDE       7-Oct  46.31   -0.13  46.18   46.36   28005
 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 = 4.2680 ringgit)
($1 = 63.9450 Indian rupees)
($1 = 6.5819 Chinese yuan)

 (Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)
  
 
 

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