January 16, 2018 / 4:54 AM / 3 months ago

VEGOILS-Palm oil falls over 1 pct on stronger ringgit

    * Palm in line for a third day of losses in four
    * Palm falls to 2,514 ringgit/T, lowest since Dec. 29
    * Market seen down in medium term as stocks remain high -
Trader

    By Emily Chow
    KUALA LUMPUR, Jan 16 (Reuters) - Malaysian palm oil futures
fell over 1 percent in early trade on Tuesday, in line for a
third day of losses in four, as a stronger ringgit dented
sentiment. 
    A stronger ringgit, palm's currency of trade,
typically makes the edible oil more expensive for foreign buyers
and curbs demand. The ringgit climbed to 3.9470, its highest in
about 18 months on Tuesday morning, but was last slightly down
0.04 percent. 
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 1.4 percent
at 2,520 ringgit ($637.09) a tonne at the midday break. It
earlier fell to 2,514 ringgit, its weakest since Dec. 29.
    Trading volumes stood at 21,734 lots of 25 tonnes each.
    "The market is reacting towards a stronger ringgit," said a
Kuala Lumpur-based futures trader. The ringgit has been
appreciating since the start of 2017, and has gained over 11
percent since. 
    While declining production could support palm, benchmark
prices are expected to go down in the medium term as stockpiles
remain high, said another trader.
    "Even if production drops 15 percent, the market cannot go
up due to high stocks," he said.
    Palm oil inventories in Malaysia, the world's second largest
producer after Indonesia, rose to an over-two-year high at
end-December to 2.7 million tonnes, up 7 percent on-month.
MYPOMS-TPO 
    In related edible oils, the March soybean oil contract
 on the Chicago Board of Trade was slightly up 0.03
percent, while the May soybean oil on the Dalian Commodity
Exchange also edged up 0.03 percent. 
    The Dalian January palm oil contract declined 0.8
percent. 
    Palm oil tracks the performance of other edible oils, as
they compete for a share in the global vegetable oils market.
    
    Palm, soy and crude oil prices as of 0438 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2505  -38.00    2503    2535     221
 MY PALM OIL       MAR8     2515  -39.00    2510    2552    4352
 MY PALM OIL       APR8     2520  -36.00    2514    2553    8693
 CHINA PALM OLEIN  MAY8     5222  -44.00    5214    5280  196302
 CHINA SOYOIL      MAY8     5736   +2.00    5732    5770  138386
 CBOT SOY OIL      MAR8    33.13   +0.00   33.13   33.34    3639
 INDIA PALM OIL    JAN8   558.30   -1.90  557.00   558.3      31
 INDIA SOYOIL      JAN8        0   +0.00       0       0       0
 NYMEX CRUDE       FEB8    64.53   +0.23   64.09   64.89  257961
  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 = 3.9555 ringgit)
($1 = 63.6800 Indian rupees)
($1 = 6.4280 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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