April 18, 2018 / 5:43 AM / a month ago

VEGOILS-Palm oil declines on correction, bearish outlook

    * Palm in line for seventh session of declines in eight days
    * Market seen adjusting after previous session's rally -
trader
    * U.S.-China trade dispute to keep sentiment cautious -
trader 

    By Emily Chow
    KUALA LUMPUR, April 18 (Reuters) - Malaysian palm oil
futures dropped on Wednesday, poised for a seventh session of
declines in eight, as the market corrected lower after a recent
rally on bearish production outlook.    
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange was down 0.7 percent
at 2,391 ringgit ($614.81) a tonne at the midday break. 
    Palm had jumped 1.6 percent in its previous trading session,
after previously seeing six straight days of declines.
    Trading volumes stood at 14,092 lots of 25 tonnes each at
the midday break.
    "The market was overdone yesterday, and is now trading back
at reasonable prices. Sentiment is not strong on the lack of
bullish news," said a futures trader in Kuala Lumpur, referring
to expectations of rising production and slow demand.
    "Although we expected a correction since the market was
oversold following six days of decline, but yesterday's jump was
over."
    Malaysia's palm oil production for April is expected to rise
in line with seasonal trend. It last rose 17.2 percent on-month
to 1.57 million tonnes in March, its highest March production
since 2000. MYPOMP-CPOTT 
    The demand for the tropical oil in April, however, is
expected to be lean. Shipments from Malaysia during the first
half of the month rose between 5 percent and 6 percent from the
corresponding period in March, compared with a rise of 25
percent-32 percent from April 1-10, showed data from inspection
company AmSpec Agri Malaysia and cargo surveyor Societe Generale
de Surveillance.
    In other related oils, the Chicago Board of Trade's May
soybean oil contract edged up as much as 0.4 percent,
while the May soybean oil on China's Dalian Commodity Exchange
 climbed up to 1.2 percent. 
    Meanwhile, the Dalian May palm oil contract gained
0.1 percent. 
    Palm oil prices are affected 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 0515 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY8     2384   -8.00    2377    2387      56
 MY PALM OIL       JUN8     2393  -14.00    2387    2402    1190
 MY PALM OIL       JUL8     2391  -17.00    2386    2404    7127
 CHINA PALM OLEIN  SEP8     4994  +12.00    4984    5008  226596
 CHINA SOYOIL      SEP8     5788   +6.00    5778    5830  244608
 CBOT SOY OIL      MAY8    31.23   +0.04   31.16   31.32    2132
 INDIA PALM OIL    APR8   640.00   +0.90  638.00   640.9      30
 INDIA SOYOIL      APR8        0   +0.00       0       0       0
 NYMEX CRUDE       MAY8    67.04   +0.52   66.56   67.10   11764
  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 = 3.8890 ringgit)
($1 = 65.6750 Indian rupees)
($1 = 6.2868 Chinese yuan)
    

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