November 23, 2017 / 4:46 AM / a year ago

VEGOILS-Palm falls on stronger ringgit, higher production outlook

    * Palm in line for fourth decline in five days
    * Market trading at 3-month lows
    * Malaysia Nov output may see only slight decline/rise -

    By Emily Chow
    KUALA LUMPUR, Nov 23 (Reuters) - Malaysian palm oil futures
fell in early trade on Thursday, and looked set for a fourth
decline in five sessions, as the edible oil was weighed down by
a stronger ringgit and prospects of rising production,
traders said.
    The ringgit rose to its strongest level in over a year on
Thursday morning. It earlier gained as much as 0.4 percent at
4.0950 against the dollar, but was last slightly down 0.1
percent at 4.1120 around noon. 
    Gains in the ringgit, palm's currency of trade, usually make
the vegetable oil more expensive for foreign buyers.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.7 percent at 2,626 ringgit ($638.62) a tonne at the midday
break, its sharpest decline since Monday.
    Traded volumes stood at 17,730 lots of 25 tonnes each at
    The market fell on the ringgit's strength, said a futures
trader from Kuala Lumpur, adding that production is also key to
market movements now.
    "November output could increase or see only a marginal
decline," he said. 
    Malaysia, the world's second largest producer, last saw
monthly output gains of 12.9 percent in October, according to
data from an industry regulator. MYPOMP-CPOTT
    Palm output typically declines towards the year-end after
peaking in August or September, but the lingering effects of the
dry weather El Nino phenomenon in 2015 could have delayed
seasonal patterns this year.
    In other related edible oils, the January soybean oil
contract on the Dalian Commodity Exchange declined 0.1
percent, while the January palm olein contract was down
0.6 percent.
    The December soybean oil contract on the Chicago
Board of Trade was not traded as the exchange was closed for a
national holiday on Thursday.
    Palm oil is impacted by movements in other edible oils as
they compete for a share of the global vegetable oils market.
    Palm, soy and crude oil prices at 0432 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2530  -55.00    2530    2563     298
 MY PALM OIL       JAN8     2600  -21.00    2592    2616    1536
 MY PALM OIL       FEB8     2626  -18.00    2617    2635    8071
 CHINA PALM OLEIN  JAN8     5394  -30.00    5384    5438  141014
 CHINA SOYOIL      JAN8     5912   -8.00    5906    5944  146420
 CBOT SOY OIL      DEC7    34.05   +0.00       0       0       0
 INDIA PALM OIL    NOV7   587.50   -2.90  586.60   588.1      23
 INDIA SOYOIL      DEC7        0   +0.00       0       0       0
 NYMEX CRUDE       JAN8    57.90   -0.12   57.85   58.06   14624
 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 = 4.1120 ringgit)
($1 = 64.8775 Indian rupees)
($1 = 6.5926 Chinese yuan)   

 (Reporting by Emily Chow; Editing by Sunil Nair)
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