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VEGOILS-Palm oil slips on hopes of higher output, stronger ringgit
August 28, 2017 / 6:19 AM / 4 months ago

VEGOILS-Palm oil slips on hopes of higher output, stronger ringgit

    * Palm hits intraday high of 2,766 rgt/tonne
    * Ringgit hits more than two-month high
    * Traders uncertain about extent of production gain

    By Emily Chow
    KUALA LUMPUR, Aug 28 (Reuters) - Malaysian palm oil futures
fell slightly on Monday, weighed down by expectations that
production in August would rise slightly, and a stronger ringgit
.
    The ringgit was up 0.2 percent around noon at 4.2650 per
dollar, after earlier hitting its strongest level in more than
two months.
    Gains in the ringgit, the currency of trade for palm oil,
typically pressure palm prices by making it more expensive for
buyers holding foreign currencies.
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.2 percent at 2,744 ringgit ($643.38) at noon. Earlier in the
session, it went as high as 2,766 ringgit.
    Traded volumes stood at 10,011 lots of 25 tonnes each at
noon.
    The market likely declined on expectations of production
growth, said a futures trader in Kuala Lumpur, adding this would
contribute to the country's growing stockpiles.
    However, traders are uncertain about the extent of gains in
production. 
    Another trader said palm prices saw some resistance "in view
of the ringgit appreciation." 
    Palm oil production in July rose 20.7 percent from a month
earlier to 1.83 million tonnes, surpassing industry
expectations, according to industry regulator data.
MYPOMP-CPOTT
    The production data for August by the Malaysian Palm Oil
Board is scheduled for release on Sept. 11. 
    In related vegetable oils, the October soybean oil contract
 on the Chicago Board of Trade rose 0.5 percent, while the
January soybean oil on the Dalian Commodity Exchange
fell 0.2 percent.
    The January palm olein contract on Dalian declined
0.4 percent.
    Palm oil prices are impacted by the movements in related
edible oils, as they compete for a share in the global vegetable
oils market. 
    
 Palm, soy and crude oil prices at 0547 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       SEP7     2724   -9.00    2721   2746      123
 MY PALM OIL       OCT7     2736   -3.00    2736   2753      532
 MY PALM OIL       NOV7     2744   -6.00    2744   2766     6266
 CHINA PALM OLEIN  JAN8     5552  -24.00    5520   5582   382686
 CHINA SOYOIL      JAN8     6382  -12.00    6342   6418   298746
 CBOT SOY OIL      DEC7    35.15   +0.18   34.84  35.25     4305
 INDIA PALM OIL    AUG7   520.60   -0.10  519.50    522      107
 INDIA SOYOIL      SEP7    662.5   -1.40  662.15  663.6     3400
 NYMEX CRUDE       OCT7    47.69   -0.18   47.61  48.20    79419
 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 = 4.2650 ringgit)
($1 = 63.9000 Indian rupees)
($1 = 6.6406 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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