March 29, 2018 / 5:09 AM / 4 months ago

VEGOILS-Palm falls for third session on weaker related oils

    * Palm hits lowest in nearly two weeks
    * Weaker ringgit seen capping fall - trader
    * Palm may drop to 2,150 rgt/T in 3 months - Techs

    By Emily Chow
    KUALA LUMPUR, March 29 (Reuters) - Malaysian palm oil
futures fell in early trade on Thursday and were headed for a
third straight session of declines, tracking weakness in related
oils on the U.S. Chicago Board of Trade and China's Dalian
Commodity Exchange.
    The benchmark palm oil contract for June delivery
on the Bursa Malaysia Derivatives Exchange was down 0.5 percent
at 2,407 ringgit ($622.45) a tonne at the midday break. Earlier
in the session, it fell to its lowest since March 13 at 2,402
    Palm prices have declined 5.9 percent so far for this month
and 3.8 percent so far in the first quarter of the year. 
    Prices could decline further this year as production is
expected to rise after a dry weather El Nino phenomenon and as
young trees come to maturity and increase harvested areas.

    Trading volumes stood at 10,354 lots of 25 tonnes each at
the midday break.    
    "External markets are weak today, led by the Dalian, but an
easing ringgit capped some of palm's losses," said a futures
trader based in Kuala Lumpur.
    The ringgit, palm's currency of trade, was down 0.1
percent at 3.8670 per dollar around Thursday noon, after rising
to its highest in nearly two years in the previous session. 
    Weakness in the ringgit usually supports palm oil prices by
making it more affordable for holders of foreign currencies.    
    In related oils, the Chicago Board of Trade's May soybean
oil contract fell 0.3 percent, while the May soybean oil
on China's Dalian Commodity Exchange declined 0.9
percent. The Dalian May palm oil contract was down 0.9
    Palm oil prices are impacted by movements in rival edible
oils as they compete in the global vegetable oils market. 
    Palm oil may drop to 2,150 ringgit per tonne in three
months, said Reuters market analyst for commodities and energy
technicals Wang Tao.
    Palm, soy and crude oil prices as of 0450 GMT
 Contract           Month   Last  Change    Low    High   Volume
 MY PALM OIL       APR8     2385  -12.00   2330    2396       20
 MY PALM OIL       MAY8     2411  -12.00   2407    2413      646
 MY PALM OIL       JUN8     2407  -11.00   2402    2411     5336
 CHINA PALM OLEIN  SEP8     5022  -56.00   5004    5068   284980
 CHINA SOYOIL      SEP8     5742  -54.00   5730    5788   310344
 CBOT SOY OIL      MAY8    31.53   -0.09  31.46   31.68     2265
 INDIA PALM OIL    APR8     0.00   +0.00   0.00       0        0
 INDIA SOYOIL      APR8    779.2   +3.10  773.6  781.85    14050
 NYMEX CRUDE       MAY8    64.67   +0.29  64.51   64.76    21381
  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 = 3.8670 ringgit)
($1 = 65.1500 Indian rupees)
($1 = 6.2915 Chinese yuan) 

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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