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VEGOILS-Palm falls for fourth session, tracking weakness in related oils
December 7, 2017 / 4:56 AM / 7 days ago

VEGOILS-Palm falls for fourth session, tracking weakness in related oils

    * Palm hits lowest in nearly five months at 2,506 rgt
    * Palm down 3 pct so far this week
    * Palm may test support at 2,519 rgt/tonne - Technicals

    By Emily Chow
    KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil futures
extended falls into a fourth session on Thursday and hit their
lowest in nearly five months, tracking weakness in related
edible oils.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.4 percent at 2,525 ringgit ($618.72) a tonne at the midday
break.
    Earlier in the session, it dropped as much as 1.1 percent to
its lowest since July 19 at 2,506 ringgit. It has shed about 3
percent so far this week, heading for a sixth straight weekly
fall, and declined about 10 percent since Nov. 1.
    Traded volumes stood at 11,960 lots of 25 tonnes each at
Thursday noon.
    "We're seeing some spillover from the overnight drop in
soyoil on the Chicago Board of Trade," said a Kuala Lumpur-based
trader.
    Heavy losses on Dalian may extend palm's downside, said
another trader.
    Palm oil prices are affected by movements in other edible
oils as they compete for a share of the global vegetable oils
market.
    The January soybean oil contract on the Chicago Board
of Trade fell 1 percent in the previous session, in line with a
broad downturn seen in many commodities, as the U.S. dollar
strengthened.
    It was last down 0.03 percent at 0430 GMT on Thursday.
    In other related oils, the January soybean oil contract on
the Dalian Commodity Exchange fell 1.2 percent, while
the Dalian January palm olein contract declined 1.3
percent.
    Palm oil may test a support at 2,519 ringgit per tonne, a
break below which could cause a loss to the next support at
2,491 ringgit, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    
    Palm, soy and crude oil prices at 0433 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2440   +5.00    2435    2441      70
 MY PALM OIL       JAN8     2497  -10.00    2478    2501     336
 MY PALM OIL       FEB8     2525  -10.00    2506    2530    5950
 CHINA PALM OLEIN  MAY8     5336  -68.00    5292    5388  292570
 CHINA SOYOIL      MAY8     5920  -70.00    5876    5990  290058
 CBOT SOY OIL      JAN8    33.16   +0.00   33.01   33.23    3376
 INDIA PALM OIL    DEC7   574.00   -0.30  574.00   574.9      10
 INDIA SOYOIL      DEC7        0   +0.00       0       0       0
 NYMEX CRUDE       JAN8    56.17   +0.21   55.99   56.19   19502
 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 = 4.0810 ringgit)
($1 = 64.5050 Indian rupees)
($1 = 6.6132 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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