September 7, 2017 / 5:31 AM / 6 months ago

VEGOILS-Palm falls on firmer ringgit; eyes on data

    * Palm oil down 0.6 pct at the midday break
    * Market responding to ringgit rise - trader
    * Ringgit rose 0.5 pct

    By Liz Lee
    KUALA LUMPUR, Sept 7 (Reuters) - Malaysian palm oil futures
fell in morning trade on Thursday, as a further strengthening of
the ringgit dampened trading sentiment.
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange dropped 0.6
percent to 2,727 ringgit ($646.98) at the midday break.
    Traded volumes were thin, at 16,135 lots of 25 tonnes each
at noon. 
    "The market is down mainly because of the ringgit," said a
Kuala Lumpur-based futures trader, adding that traders are
keeping to the sidelines ahead of industry data.
    The ringgit has been strengthening for the past three days,
rising 0.54 percent on Thursday, its biggest gain since April
    A more expensive ringgit makes palm oil less attractive to
buyers of the tropical oil holding foreign currencies.
    Another trader, based in Singapore said external factors are
looking weak to neutral, with a stronger ringgit and drop in
soyoil prices impacting palm.
    "Seasonally, palm is quite expensive. It has never been this
price for an estimated 2 million tonne stock," the trader said.
    A Reuters poll among planters, analysts and traders showed
that Malaysian palm oil August stocks are expected to rise
towards the 2-million tonne mark, as output remains near its
strongest in two years.
    The Malaysian Palm Oil Board is due to release production
and export data on Sept. 11.
    On technicals, palm oil may retest a resistance at 2,769
ringgit per tonne, a break above which could lead to a gain to
the next resistance at 2,790 ringgit, said Reuters market
analyst for commodities and energy technicals Wang Tao.

    The soybean oil contract on the Chicago Board of
Trade was unchanged.
    In other related oils, the January soybean oil on the Dalian
Commodity Exchange was down 0.5 percent, while the
January palm olein contract also fell 0.9 percent.
    Palm oil prices are affected by the movements in related
edible oils, as they compete for a share in the global vegetable
oils market. 
 Palm, soy and crude oil prices at 0456 GMT
 Contract               Month     Last   Change      Low       High       Volume
 MY PALM OIL         SEP7         2712    -8.00     2695       2715          247
 MY PALM OIL         OCT7         2720   -14.00     2709       2723         1115
 MY PALM OIL         NOV7         2727   -17.00     2716       2732         8729
 CHINA PALM OLEIN    JAN8         5508   -48.00     5490       5552       389824
 CHINA SOYOIL        JAN8         6358   -30.00     6340       6386       293826
 CBOT SOY OIL        DEC7        35.55    +0.00    35.46      35.61         3382
 INDIA PALM OIL      SEP7       524.40    -0.70   522.50      524.6          120
 INDIA SOYOIL        SEP7        660.3    -1.65    659.4     660.65          840
 NYMEX CRUDE         OCT7        49.08    -0.08    49.04      49.20        23808
 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 = 4.2150 ringgit)
($1 = 64.02 Indian rupees)
($1 = 6.52 Chinese yuan)   

 (Reporting by Liz Lee; Editing by Richard Pullin)
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