February 14, 2018 / 4:57 AM / 9 months ago

VEGOILS-Palm in line for second day of falls on weaker rival oils

    * Market down 0.5 pct on-week so far
    * Stronger ringgit also weighs on palm - Trader
    * Palm may retrace into 2,466-2,486 rgt/T range - Technicals

    By Emily Chow
    KUALA LUMPUR, Feb 14 (Reuters) - Malaysian palm oil futures
fell in early trade on Wednesday, in line for a second day of
declines, tracking overnight declines in U.S. soyoil on the
Chicago Board of Trade (CBOT) and on a stronger ringgit. 
    A stronger ringgit, palm's currency of trade,
typically makes the edible oil more expensive for holders of
foreign currencies. The ringgit strengthened 0.4 percent against
the dollar to 3.9230 around noon. 
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.5 percent
at 2,502 ringgit ($637.78) a tonne at the midday break.
    Palm fell over 1 percent on Tuesday, snapping four days of
gains. It is also down 0.5 percent for the week so far.  
    Trading volumes stood at 11,831 lots of 25 tonnes each.
    The market decline is due to overnight losses in CBOT
soyoil, said a futures trader from Kuala Lumpur, adding that
weakness in palm olein on China's Dalian Commodity Exchange and
the appreciation in the ringgit contributed to palm's decline. 
    "The market is also trading cautiously ahead of export data
release and the long weekend ahead," said the trader, referring
to Malaysian Feb. 1-15 palm oil export data from cargo surveyors
scheduled for release on Thursday.
    Malaysian markets will be closed on Thursday after the
midday break and on Friday for the Lunar New Year holiday.
Markets will resume trading on Feb. 19.    
    The March soybean oil contract on the Chicago Board
of Trade saw an overnight fall  of 0.9 percent, before rising
0.2 percent on Wednesday. 
    In other related edible oils, the May soybean oil on the
Dalian Commodity Exchange fell 0.3 percent, while the
Dalian May palm oil contract was down 0.7 percent.     
    Palm oil prices are impacted by other rival edible oils, as
they compete for a share in the global vegetable oils market. 
    Palm oil may retrace into a range of 2,466-2,486 ringgit per
tonne, said Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    Palm, soy and crude oil prices as of 0442 GMT
 Contract           Month    Last  Change     Low   High  Volume
 MY PALM OIL       FEB8      2502   -8.00    2502   2502       5
 MY PALM OIL       MAR8      2507  -14.00    2500   2511     121
 MY PALM OIL       APR8      2502  -13.00    2493   2509    4607
 CHINA PALM OLEIN  MAY8      5138  -38.00    5134   5184  106282
 CHINA SOYOIL      MAY8      5628  -14.00    5622   5662  127286
 CBOT SOY OIL      MAR8     31.64   +0.07   31.56  31.69    3711
 INDIA PALM OIL    FEB8    575.90   -0.10  575.20  578.3      46
 INDIA SOYOIL      FEB8     735.5   -3.10   735.5  735.5      20
 NYMEX CRUDE       MAR8     59.16   -0.03   58.83  59.31   28693
  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 = 3.9230 ringgit)
($1 = 64.1100 Indian rupees)
($1 = 6.3320 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
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