March 26, 2018 / 4:54 AM / 8 months ago

VEGOILS-Palm falls to one-week low on weak demand outlook, stronger ringgit

    * Palm falls to one-week low of 2,416 rgt/T
    * Market also down on rising output forecasts - Trader
    * Malaysian exports up 9.5 pct on-month during March 1-25

    By Emily Chow
    KUALA LUMPUR, March 26 (Reuters) - Malaysian palm oil
futures declined in early trade on Monday, hitting a one-week
low in early session, weighed down by a weakening demand outlook
and a stronger ringgit.
    Gains in the ringgit, palm's currency of trade,
usually make the oil more expensive for holders of foreign
currencies. The ringgit strengthened 0.3 percent against the
dollar around noon on Monday to 3.9030.
    The benchmark palm oil contract for June delivery
on the Bursa Malaysia Derivatives Exchange was down 0.45 percent
to 2,417 ringgit ($619.27) a tonne at the midday break. It
earlier fell to 2,416 ringgit, its lowest since March 20.
    Trading volumes stood at 8,381 lots of 25 tonnes each.
    "The ringgit is stronger today and, going forward, the
market feels that April exports will decline as duties are
imposed," said a futures trader from Kuala Lumpur, referring to
Malaysia's resumption of crude palm oil export taxes in April.

    Malaysia in early January suspended its export tax on crude
palm oil for three months to increase demand and boost prices,
as it expected stockpiles to grow in 2018.
    While Malaysian palm oil demand is expected to rise in the
short term before the export tax kicks in, the market expects
exports to slump from April onwards as buyers switch to more
competitively priced Indonesian palm. 
    Inspection company AmSpec Agri Malaysia reported on Monday
that Malaysian palm oil shipments rose 9.5 percent between March
1-25 versus the same period last month.
    The trader also added that expectations of rising production
for the full month of March is also weighing on sentiment. Palm
oil output typically sees seasonal gains around the second
quarter of the year before peaking in the third quarter.
    In other related oils, the Chicago Board of Trade's May
soybean oil contract rose 0.5 percent, while the May
soybean oil on China's Dalian Commodity Exchange fell
0.1 percent. 
    The Dalian May palm oil contract declined 0.2
    Palm oil prices are impacted by movements in rival edible
oils as they compete in the global vegetable oils market.    

    Palm, soy and crude oil prices as of 0444 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       APR8     2410  -10.00    2390    2415      48
 MY PALM OIL       MAY8     2422  -10.00    2419    2436    1270
 MY PALM OIL       JUN8     2417  -11.00    2416    2433    4534
 CHINA PALM OLEIN  SEP8     5102  -16.00    4980    5116  400914
 CHINA SOYOIL      SEP8     5844   +2.00    5690    5874  544532
 CBOT SOY OIL      MAY8    31.57   +0.15   31.42   31.71    7606
 INDIA PALM OIL    MAR8   643.50   -1.00  643.50   644.5      10
 INDIA SOYOIL      APR8      780   -0.15   779.5  780.45     120
 NYMEX CRUDE       MAY8    65.57   -0.31   65.46   66.55   89311
  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 = 3.9030 ringgit)
($1 = 64.8800 Indian rupees)
($1 = 6.3117 Chinese yuan) 

 (Reporting by Emily Chow; Editing by Sunil Nair)
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