December 21, 2017 / 5:06 AM / 6 months ago

VEGOILS-Palm oil falls on lingering stockpile concerns, weak rival oils

    * Market still wary of soft demand - trader
    * Weaker rival veg oils further weigh on Malaysian palm
    * No positive news, but bargain buyers could cushion price
drop -
trader

    By Liz Lee
    KUALA LUMPUR, Dec 21 (Reuters) - Malaysian palm oil futures
tumbled in early trade on Thursday, as worries over soft demand
leading to high stockpiles in December lingered while weakness
in rival oils compounded the bleak picture.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange dropped 1.32 percent
to 2,466 ringgit ($605.00) a tonne at the midday break, and
looked set for a third straight session of falls.
    Trading volumes stood at 16,130 lots of 25 tonnes each.
    "Demand has not been promising. The market is closely
watching how exports will turn out (this month)," a Kuala
Lumpur-based trader said, noting that stocks could rise for
another month.
    Malaysian palm oil shipments fell 2 percent on Dec. 1-20
compared with the same period last month, data from cargo
surveyor Intertek Testing Services showed.
    Inventory levels in Malaysia rose to their highest in nearly
two years, by 16 percent to 2.56 million tonnes, while exports
for November fell 11.9 percent on-month, data from the Malaysian
Palm Oil Board last week showed. MYPOMS-TPO MYPOME-PO

    Demand from Europe and China, key regions for palm oil
exports, typically dwindles at the end of the year, as colder
weather in the northern hemisphere solidifies the tropical oil. 
    Another trader said weakness in rival vegetable oils has
exerted further pressure on palm, but the market could be
slightly relieved by bargain hunters.
    "Overall the market lacked positive news. Bargain buyers
could come in and there could be buying for a year-end rally,"
the trader said. 
    In other related edible oils, the January soybean oil
contract on the Chicago Board of Trade slid 0.4 percent,
while the May soybean oil contract on the Dalian Commodity
Exchange was down 1.3 percent.
    The Dalian January palm olein contract fell 1.6
percent.    
    Palm oil prices are impacted by movements in other edible
oils, as they compete for a share of the global vegetable oils
market.

    Palm, soy and crude oil prices as of 0435 GMT
 Contract                     Month      Last    Change         Low       High       Volume
 MY PALM OIL               JAN8          2415    -35.00        2415       2428           27
 MY PALM OIL               FEB8          2441    -36.00        2441       2464         1198
 MY PALM OIL               MAR8          2466    -33.00        2465       2490         6722
 CHINA PALM OLEIN          MAY8          5190    -84.00        5184       5268       294908
 CHINA SOYOIL              MAY8          5710    -76.00        5702       5806       312262
 CBOT SOY OIL              JAN8         32.83     -0.13       32.83      33.01         2143
 INDIA PALM OIL            DEC7        554.40     -3.30      553.70      556.5           33
 INDIA SOYOIL              JAN8         718.5     -2.55       718.5      720.3          790
 NYMEX CRUDE               FEB8         58.03     -0.06       58.00      58.08         9315
 
  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 = 4.0760 ringgit)
($1 = 64.1100 Indian rupees)
($1 = 6.5680 Chinese yuan)

 (Reporting by Liz Lee; Editing by Sunil Nair)
  
 
 
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