December 5, 2017 / 5:41 AM / a month ago

VEGOILS-Palm oil hits over 4-month low on stronger ringgit

    * Palm down 1.2 pct at noon, heads for second session of
decline
    * Expectations of rising end-stocks also weigh on market -
trader
    * Palm may fall into 2,519-2,555 ringgit/tonne range -
Technicals

    By Emily Chow
    KUALA LUMPUR, Dec 5 (Reuters) - Malaysian palm oil futures
hit a more than four-month low on Tuesday as the ringgit
strengthened, making the tropical oil more expensive for holders
of foreign currencies.
    The ringgit, palm's currency of trade, rose to its highest
since September 2016 against the dollar, and was last up 0.2
percent at 4.0520.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was down
1.2 percent at 2,558 ringgit ($631.45) a tonne at the midday
break, heading for a second straight session of decline.
    Earlier in the session, the contract fell as much as 1.3
percent to 2,554 ringgit, its lowest since July 24.     
    Traded volumes stood at 17,197 lots of 25 tonnes each at
noon.
    "The ringgit continues to strengthen," said a futures trader
from Kuala Lumpur.
    The Malaysian currency has gained over 4 percent since Nov.
1 and 10 percent so far this year. 
    "Expectations about Malaysia's end-November stockpiles are
also bearish," said the trader, as weaker exports last month are
seen contributing to rising end-stocks. 
    Production in Malaysia, the world's second largest producer
after Indonesia, rose 12.9 percent in October from a month
earlier to hit the 2 million tonne mark, while end-stocks gained
8.4 percent to 2.2 million tonnes. MYPOMP-CPOTT MYPOMS-TPO
    In other related oils, the January soybean oil contract
 on the Chicago Board of Trade was down 0.1 percent, while
the January soybean oil contract on the Dalian Commodity
Exchange fell 0.3 percent.
    Meanwhile, China's Dalian January palm olein contract
 declined 0.5 percent.
    Palm oil is impacted by movements in other edible oils as
they compete for a share of the global vegetable oils market.
    Palm oil may fall into a range of 2,519 ringgit to 2,555
ringgit per tonne, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
      
    Palm, soy and crude oil prices at 0505 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       DEC7     2450  -30.00    2445   2455       74
 MY PALM OIL       JAN8     2521  -34.00    2519   2544     1216
 MY PALM OIL       FEB8     2558  -30.00    2554   2582     8363
 CHINA PALM OLEIN  MAY8     5424  -48.00    5416   5486   201442
 CHINA SOYOIL      MAY8     6002  -36.00    5998   6064   219332
 CBOT SOY OIL      JAN8     33.4   +0.00    33.4  33.54     4164
 INDIA PALM OIL    DEC7   577.30   -3.20  576.00    579      212
 INDIA SOYOIL      DEC7    725.7   -1.60   724.6    726     1540
 NYMEX CRUDE       JAN8    57.58   +0.11   57.40  57.64    13988
 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 = 4.0510 ringgit)
($1 = 64.3000 Indian rupees)
($1 = 6.6110 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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