March 5, 2018 / 5:39 AM / 3 months ago

VEGOILS-Palm extends fall to 1-month low on India tax hike, stronger ringgit

    * Palm down for a third straight session
    * Palm may fall to 2,439 rgt/T - technicals
    * Malaysia Feb exports seen down 11.9 pct - Reuters survey

    By Emily Chow
    KUALA LUMPUR, March 5 (Reuters) - Malaysian palm oil futures
dropped up to 1 percent on Monday, extending falls into a third
session, after India raised import taxes on the tropical oil
last week while a stronger ringgit also weighed on
prices.
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was down 0.8 percent
at 2,454 ringgit ($629.72) a tonne at the midday break, after
shedding about 3 percent on Friday. Earlier in the session, it
fell to its lowest in a month at 2,449 ringgit.
    Trading volumes stood at 5,080 lots of 25 tonnes each at the
midday break.
    "Sentiment has been weakened after India raised import
duties. There is a lack of fresh supportive news to reverse it
yet," said a futures trader based in Kuala Lumpur, adding that
sentiment was also cautious ahead of an industry conference this
week.  
    Top edible oils importer India said late on Thursday that it
would raise import taxes on palm oil to the highest level in
more than a decade.
    "However, India would still need to buy (palm oil) if their
crop is poor," said the trader. 
    Malaysian palm oil exports rose 6 percent on month to 1.5
million tonnes in January, data from the Malaysian Palm Oil
Board showed. MYPOME-PO 
    Exports from Malaysia are forecast to drop 11.9 percent to
1.33 million tonnes in February, according to a Reuters survey
of eight traders, planters and analysts.
    Production in February is seen declining 12 percent to 1.4
million tonnes, while stocks are seen down 6.9 percent at 2.37
million tonnes.
    Gains in the ringgit, palm's traded currency, usually make
the vegetable oil more expensive for foreign buyers. The
Malaysian currency had strengthened by 0.1 percent against the
dollar to 3.8970 by noon.    
    In other related oils, the Chicago Board of Trade's May
soybean oil contract was up 0.1 percent, while the May
soybean oil on China's Dalian Commodity Exchange rose
0.2 percent. The Dalian May palm oil contract was down 1
percent.
    Palm oil prices are impacted by movements in rival edible
oils as they compete for a share in the global vegetable oils
market.
    Palm oil may break a support at 2,464 ringgit per tonne and
fall more to the next support at 2,439 ringgit, said Wang Tao, a
Reuters market analyst for commodities and energy technicals.

    
    Palm, soy and crude oil prices as of 0500 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAR8     2476  -20.00    2476    2476      10
 MY PALM OIL       APR8     2460  -20.00    2456    2466     121
 MY PALM OIL       MAY8     2454  -20.00    2449    2461    3443
 CHINA PALM OLEIN  MAY8     5236  -54.00    5210    5280  271748
 CHINA SOYOIL      MAY8     5838  +10.00    5808    5886  312706
 CBOT SOY OIL      MAY8    32.34   +0.06   32.17   32.42    5457
 INDIA PALM OIL    MAR8   635.50  +15.70  634.80   638.3    1501
 INDIA SOYOIL      MAR8      773  +17.65     770     778    8870
 NYMEX CRUDE       APR8    61.40   +0.15   61.40   61.75   39913
  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 = 3.8970 ringgit)
($1 = 65.0200 Indian rupees)
($1 = 6.3310 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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