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VEGOILS-Palm extends run of declines on weaker soyoil, firm ringgit
November 13, 2017 / 5:53 AM / in a month

VEGOILS-Palm extends run of declines on weaker soyoil, firm ringgit

    * Firmer ringgit makes tropical oil more expensive for
foreign
buyers - trader
    * Palm neutral in 2,779-2,808 rgt/T range - Technicals

    By Emily Chow
    KUALA LUMPUR, Nov 13 (Reuters) - Malaysian palm oil futures
extended declines on Monday, heading for their third straight
session of falls, as it weakened in line with overnight losses
in soyoil on the Chicago Board of Trade (CBOT). 
    A stronger ringgit, palm's currency of trade, also
weighed on the tropical oil, said a trader, as this makes the
oilseed more expensive for foreign buyers.  
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.6 percent at 2,781 ringgit ($664.52) a tonne at the midday
break. 
    Traded volumes stood at 16,195 lots of 25 tonnes each at
noon on Monday.
    "Palm is down following the overnight soybean oil market,
which is looking at market oversupplies," said a Kuala
Lumpur-based futures trader, referring to CBOT soyoil, which
witnessed a third session of declines following a U.S.
Department of Agriculture (USDA) crop report released last week.
    The USDA had raised its corn crop forecast to 14.578 billion
bushels, based on an average yield of 175.4 bushels per acre,
which would top a record set last year if realised.
    The trader added that the stronger ringgit, which hit its
strongest in nearly two months on Monday, also weighed on the
market. It was last up 0.1 percent at 4.1850 per dollar, its
strongest level since Sept. 20.
    Palm oil looks neutral in a range of 2,779-2,808 ringgit per
tonne, said Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade dropped as much as
0.4 percent, while the January soybean oil contract on the
Dalian Commodity Exchange slipped up to 0.7 percent. 
    The January palm olein contract slightly dipped as
much as 0.2 percent.
    Palm oil is impacted by other edible oils as they compete
for a share of the global vegetable oils market.
   
    Palm, soy and crude oil prices at 0523 GMT  
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       NOV7        0   +0.00       0       0       0
 MY PALM OIL       DEC7     2760  -19.00    2760    2774      85
 MY PALM OIL       JAN8     2781  -16.00    2778    2795    9348
 CHINA PALM OLEIN  JAN8     5636  -10.00    5606    5644  154832
 CHINA SOYOIL      JAN8     6080  -28.00    6066    6098  134748
 CBOT SOY OIL      DEC7    34.69   -0.12   34.66   34.83    6554
 INDIA PALM OIL    NOV7   566.60   -0.90  566.50     568      92
 INDIA SOYOIL      NOV7      694   -2.80   692.1     697     320
 NYMEX CRUDE       DEC7    56.80   +0.06   56.77   57.02   15074
 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 = 4.1850 ringgit)
($1 = 65.3075 Indian rupees)
($1 = 6.6448 Chinese yuan)
    

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

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