January 23, 2018 / 5:49 AM / 7 months ago

VEGOILS-Palm oil retreats on stronger ringgit

    * Palm in line for fifth session of drop in six
    * Market awaits production figures - trader
    * Palm may retest support at 2,426 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Jan 23 (Reuters) - Malaysian palm oil futures
fell nearly 1 percent on Tuesday, erasing most of the previous
session's sharp gain and heading for a fifth session of drop in
six, as a stronger ringgit weighed on the market.
    Gains in the ringgit, palm's currency of trade, usually
weigh on the tropical oil by making it more expensive for
holders of foreign currencies. 
    The ringgit was up 0.2 percent against the dollar around
Tuesday noon at 3.9250, after hitting its strongest in nearly
two years earlier in the day.
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.7 percent
at 2,459 ringgit ($626.50) a tonne at the midday break, after
shedding as much as 0.9 percent earlier in the session.
    Palm oil climbed 1.2 percent on Monday after industry
analysts forecast bullish price outlooks at an industry
conference in Karachi on Saturday.
    It has shed 3.7 percent in the past six sessions, and 1.8
percent so far this year. 
    Trading volumes stood at 16,645 lots of 25 tonnes each at
the midday break on Tuesday.
    "The market is also waiting to see production figures from
the Malaysia Palm Oil Association," said a Kuala Lumpur-based
    Palm oil output is expected to see seasonal declines in the
first quarter of the year before picking up and heading towards
peak production in the third quarter.
    Declining output typically lends support to prices. "But
this will also depend on the sharpness of the fall," the trader
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade edged up 0.1 percent,
while the May soybean oil on the Dalian Commodity Exchange
 gained 0.6 percent. 
    The Dalian May palm oil contract rose 0.2 percent. 
    Palm oil may retest a support at 2,426 ringgit per tonne, a
break below which could cause loss to the next support at 2,402
ringgit, said Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    Palm, soy and crude oil prices as of 0516 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2458   -7.00    2444    2462     407
 MY PALM OIL       MAR8     2461  -12.00    2453    2470    1882
 MY PALM OIL       APR8     2459  -16.00    2452    2470    8240
 CHINA PALM OLEIN  MAY8     5184   +8.00    5170    5216  185540
 CHINA SOYOIL      MAY8     5752  +32.00    5734    5782  233594
 CBOT SOY OIL      MAR8     32.2   +0.04   32.17   32.24    3076
 INDIA PALM OIL    JAN8   553.10   -0.70  550.20   554.6     115
 INDIA SOYOIL      FEB8    736.8   +0.40     735   737.5    3270
 NYMEX CRUDE       MAR8    63.95   +0.38   63.74   64.02   29485
  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 = 3.9250 ringgit)
($1 = 63.8075 Indian rupees)
($1 = 6.3980 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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