November 17, 2017 / 5:39 AM / a year ago

VEGOILS-Palm oil dips on stronger ringgit, rising production outlook

    * Palm down for third consecutive week
    * Market seen range trading until year-end on weather
pattern -
    * Palm may end downtrend above 2,708 rgt/T range -

    By Emily Chow
    KUALA LUMPUR, Nov 17 (Reuters) - Malaysian palm oil futures
fell in early trade on Friday, in line for their sixth decline
in seven sessions, weighed down by a stronger ringgit and
expectations of rising production.
    Gains in the ringgit, palm's currency of trade, usually make
the edible oil more expensive for foreign buyers. The ringgit
rose to its highest in about a year at 4.1580 per dollar on
Friday. It was last up 0.4 percent at 4.1600 against the dollar.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.4 percent at 2,728 ringgit a tonne at the midday break.
    Palm was also down 2.5 percent so far this week, and set for
a third straight week of falls in what would be its sharpest
weekly decline in two months. 
    Traded volume stood at 14,889 lots of 25 tonnes each at
    "The ringgit is the reason for the market weakness, and
without any other bullish factors it will be difficult for palm
to move up," said a trader based in Kuala Lumpur.
    While palm oil production is seen seasonally falling towards
the year-end after a likely peak in October, the current rains
could contribute to better-than-expected productivity, said the
    Short-term disruptions to production could, however, keep
palm range-bound.
    "Palm is going to be range-trading until next year because
of the weather. It is encouraging growth now as this increases
production, but more rains could damage crops."
    Malaysian palm oil production rose over 12 percent in
October versus the previous month, on the back of a higher
number of working days and in line with the seasonal trend.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade rose 0.6 percent,
while the January soybean oil contract on the Dalian Commodity
Exchange was slightly up 0.03 percent. 
    The January palm olein contract was up 0.2 percent.
    Palm oil prices are impacted by movements in other edible
oils as they compete for a share of the global vegetable oils
    Palm oil may end its current downtrend from the Oct. 30 high
of 2,868 ringgit above a key support at 2,708 ringgit per tonne,
said Wang Tao, a Reuters market analyst for commodities and
energy technicals.
    Palm, soy and crude oil prices at 0525 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2694  -12.00    2694    2701      94
 MY PALM OIL       JAN8     2707  -13.00    2703    2721    2157
 MY PALM OIL       FEB8     2728  -10.00    2721    2740    7477
 CHINA PALM OLEIN  JAN8     5494   +8.00    5472    5510  131518
 CHINA SOYOIL      JAN8     5986   +2.00    5968    6008  141258
 CBOT SOY OIL      DEC7    34.62   +0.19   34.49   34.64    3106
 INDIA PALM OIL    NOV7   545.10   +1.70  541.80   545.1     303
 INDIA SOYOIL      NOV7      680   -0.45     680     680     170
 NYMEX CRUDE       DEC7    55.27   +0.13   55.18   55.36    8284
 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
 (Reporting by Emily Chow; Editing by Sunil Nair)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below