April 24, 2018 / 5:30 AM / a month ago

VEGOILS-Palm hits one-week low on overnight U.S. soyoil losses

    * Palm falls to 2,391 rgt/T, lowest since April 18
    * Weaker ringgit seen to cap losses - trader
    * Palm may retest resistance at 2,434 rgt/T - Technicals 

    By Emily Chow
    KUALA LUMPUR, April 24 (Reuters) - Malaysian palm oil
futures edged lower on Tuesday, hitting their lowest in a week,
tracking overnight losses in related edible oils such as soyoil
on the U.S. Chicago Board of Trade and China's Dalian Commodity
Exchange. 
    A weaker ringgit, however, may curb further losses in
palm prices, added traders.
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange dropped 0.2 percent
to 2,404 ringgit ($615.46) a tonne at the midday break, in line
for a second consecutive day of declines. 
    Earlier in the session, the palm oil contract touched 2,391
ringgit, its weakest since April 18.
    Trading volumes stood at 15,361 lots of 25 tonnes each at
the midday break.
    "Weakness in competing edible oils is weighing on the
market," said a Kuala Lumpur-based futures trader. 
    "Depreciation in the local currency, however, may provide
support and cushion selling interest," he said, referring to the
Malaysian ringgit, which is palm's currency of trade. 
    The ringgit has steadily weakened in the past two weeks and
shed 1 percent of its value against the dollar since April 11.
It was down 0.2 percent at 3.9060 per dollar around noon on
Tuesday. 
    A weaker ringgit makes palm oil cheaper for holders of
foreign currencies. 
    Palm oil may retest a resistance at 2,434 ringgit per tonne,
a break above which could lead to a gain to the next resistance
at 2,476 ringgit, said Wang Tao, a Reuters market analyst for
commodities and energy technicals. 
    In other related oils, Chicago's July soybean oil contract
 posted a decline of 0.8 percent in the previous session,
and slipped 0.03 percent on Tuesday. 
    Meanwhile, the September soybean oil on China's Dalian
Commodity Exchange slid as much as 0.8 percent, while
the Dalian September palm oil contract fell up to 0.6
percent. 
    Palm oil is impacted by movements in rival edible oils as
they compete for a share in the global vegetable oils market.   
    
    Palm, soy and crude oil prices as of 0510 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY8     2399   -3.00    2385    2399      17
 MY PALM OIL       JUN8     2404   -4.00    2393    2407    2649
 MY PALM OIL       JUL8     2404   -4.00    2391    2405    5330
 CHINA PALM OLEIN  SEP8     4990  -32.00    4974    5008  232692
 CHINA SOYOIL      SEP8     5782  -46.00    5764    5824  259148
 CBOT SOY OIL      JUL8    31.29   -0.01   31.22   31.34    4426
 INDIA PALM OIL    APR8   642.40   -1.50  642.40   643.9      31
 INDIA SOYOIL      MAY8    771.8   -0.95     771   776.5    1790
 NYMEX CRUDE       JUN8    68.93   +0.29   68.77   69.09   33406
  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 = 3.9060 ringgit)
($1 = 66.3575 Indian rupees)
($1 = 6.3125 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 
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