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VEGOILS-Palm hits over 1-mth low on softer demand, weaker soyoil
September 25, 2017 / 6:51 AM / 3 months ago

VEGOILS-Palm hits over 1-mth low on softer demand, weaker soyoil

    * Palm in line for second session of decline
    * Stronger ringgit also weighs on mkt - trader

    By Emily Chow
    KUALA LUMPUR, Sept 25 (Reuters) - Malaysian palm oil futures
fell 1.5 percent to their lowest in more than a month on Monday,
tracking weakness in soyoil on the Chicago Board of Trade (CBOT)
and as demand from top consumers China and India weakened.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was down
1.3 percent at 2,701 ringgit ($644.32) a tonne at the midday
break, after declining as much as 1.5 percent to its lowest
since Aug. 21 at 2,695 ringgit.
    The contract posted its biggest intraday percentage drop in
one week, and was headed for a second straight session of
decline.
    Traded volumes stood at 16,551 lots of 25 tonnes each at
noon.
    "Demand is tapering off... buyers are now fully covered. It
doesn't look like there will be any more heavy demand from the
two prominent buyers China and India," said a trader from Kuala
Lumpur, adding that he expected demand to remain soft until the
end of the year.
    China and India stocked up this month for mid-Autumn and
Diwali festivities in October, which typically see higher
consumption of the tropical oil. 
    Malaysia's palm oil shipments during Sept. 1-25 rose 16.1
percent from a month earlier, according to cargo surveyor data
from Intertek Testing Services (ITS).
    Shipments during Sept. 1-20 rose 25.4 percent from a month
ago, ITS data showed.
    Another trader said palm is likely to drop further due to
continued weakness in CBOT soyoil and gains in the local
currency. 
    The ringgit, the currency of trade for palm oil, was
up 0.1 percent at 4.1920 per dollar around Monday noon. 
    A stronger ringgit typically makes palm oil more expensive
for foreign currency holders.
    Palm oil prices are also affected by movements in related
edible oils including soy, as they compete for a share of the
global vegetable oils market. 
    The October soybean oil contract on the Chicago Board
of Trade fell 0.6 percent lower on Monday, while the January
soybean oil contract on the Dalian Commodity Exchange
dropped 1.1 percent. 
    In other related oils, the January palm olein contract
 declined 0.9 percent.
        
 Palm, soy and crude oil prices at 0614 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       OCT7     2711  -37.00    2708   2728      289
 MY PALM OIL       NOV7     2695  -40.00    2691   2711     1721
 MY PALM OIL       DEC7     2701  -36.00    2695   2715     8084
 CHINA PALM OLEIN  JAN8     5582  -54.00    5572   5692   475496
 CHINA SOYOIL      JAN8     6172  -68.00    6158   6268   387046
 CBOT SOY OIL      DEC7    34.04   -0.19   34.03  34.22     7197
 INDIA PALM OIL    SEP7   541.60   -3.30  541.20  542.4      197
 INDIA SOYOIL      OCT7   676.25   -5.35   676.1  678.5     9970
 NYMEX CRUDE       NOV7    50.57   -0.09   50.47  50.72    18330
 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 = 4.1920 ringgit)
($1 = 64.8200 Indian rupees)
($1 = 6.6043 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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