November 15, 2017 / 5:36 AM / 9 months ago

VEGOILS-Palm hits 1-mth low on weaker crude oil, stronger ringgit

    * Palm down for fifth consecutive session
    * Palm may fall more to 2,709 rgt/T - technicals
    * Cargo surveyor data showing lower exports weighs on mkt -

    By Emily Chow
    KUALA LUMPUR, Nov 15 (Reuters) - Malaysian palm oil futures
hit their lowest in nearly one month on Wednesday, tracking
weakness in crude oil and as the ringgit strengthened.
    The Malaysian currency hit its strongest in about a year
against the dollar and was last up 0.3 percent at 4.1820 around
    Gains in the ringgit, the currency of trade for palm,
usually make the edible oil more expensive for foreign buyers.
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was 0.1
percent lower at 2,714 ringgit ($648.97) a tonne at the midday
break, down for a fifth straight session.
    Earlier in the day, it hit its lowest since Oct. 19 at 
2,711 ringgit.
    Traded volumes stood at 15,174 lots of 25 tonnes each at
    "Palm's downside trend may prolong in view of the
strengthening ringgit and weakness on the energy front," said a
Kuala Lumpur-based trader.
    Crude oil prices fell over 1 percent, continuing Tuesday's
slide after the International Energy Agency cast doubts over the
past few months' narrative of tightening fuel markets.
    Global oil demand growth looks likely to increase more
slowly over the coming months, as warmer temperatures cut
consumption, which may tilt the market back into surplus in the
first half of next year, the agency said.
    Lower exports also weighed on the market, said another
trader, referring to cargo surveyor data that was released
before the midday break.
    Exports of Malaysian palm oil products for Nov. 1-15 fell
4.3 percent from a month earlier, data from Intertek Testing
Services showed.
    Appetite for palm oil usually slows towards the end of the
year in markets with winter seasons such as China and Europe, as
the tropical oil solidifies in cold temperatures. 
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade rose 0.2 percent,
while the January soybean oil contract on the Dalian Commodity
Exchange declined 0.8 percent. Dalian's January palm
olein contract was down 0.9 percent.
    Palm oil is impacted by movements in other edible oils as
they compete for a share of the global vegetable oils market.
    Palm oil's February contract may fall more to 2,709 ringgit
per tonne as it has broken a support at 2,739 ringgit, according
to Reuters technical analyst Wang Tao.
    Palm, soy and crude oil prices at 0500 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       NOV7     2710  +56.00    2710   2710        1
 MY PALM OIL       DEC7     2693   +0.00    2690   2699      261
 MY PALM OIL       JAN8     2714   -3.00    2711   2723     6977
 CHINA PALM OLEIN  JAN8     5508  -48.00    5466   5538   229712
 CHINA SOYOIL      JAN8     5990  -48.00    5982   6036   201272
 CBOT SOY OIL      DEC7    34.06   +0.05   34.01  34.13     4803
 INDIA PALM OIL    NOV7   561.50   +0.70  561.00  562.4       75
 INDIA SOYOIL      NOV7    688.2   -1.90   688.2    690      280
 NYMEX CRUDE       DEC7    55.03   -0.67   54.99  55.16    17828
 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 = 4.1820 ringgit)
($1 = 65.3500 Indian rupees)
($1 = 6.6306 Chinese yuan) 

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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