September 27, 2017 / 5:32 AM / in a month

VEGOILS-Palm sheds early gains tracking overnight losses in rival soyoil

    * Palm in line for third decline in four sessions
    * Weaker ringgit could reduce selling pressure - trader

    By Emily Chow
    KUALA LUMPUR, Sept 27 (Reuters) - Malaysian palm oil futures
erased earlier gains to edge lower on Wednesday, tracking
overnight losses in soyoil on the Chicago Board of Trade.
    Losses in the ringgit, the currency of trade for palm
oil, might curb declines in the tropical oil, said a trader.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange fell 0.4
percent to 2,739 ringgit ($649.44) a tonne at the midday break,
on track for its third drop in four sessions.
    Traded volumes stood at 22,474 lots of 25 tonnes each at
noon.
    Palm oil prices fell on Wednesday morning tracking overnight
losses in CBOT soyoil, said two futures traders from Kuala
Lumpur.  
    "Weakness in the local currency could, however, cushion the
selling pressure," added one trader. 
    A weaker ringgit usually makes palm oil cheaper for holders
of foreign currencies. Earlier in the session, the currency
slipped as much as 0.3 percent to 4.2190 per dollar, its weakest
in near three weeks.   
    The December soybean oil contract on the Chicago
Board of Trade gained up to 0.4 percent, after closing down 1.6
percent in its previous session on better-than-expected yield
reports from the U.S. midwest. 
    Palm oil prices slided after the U.S. Environmental
Protection Agency said it was seeking comments on a proposal to
reduce biodiesel blending requirements into the domestic fuel
supply. Soyoil is the primary feedstock for soy-based biodiesel
fuel.
    In other related oils, the January soybean oil contract on
the Dalian Commodity Exchange fell as much as 0.6
percent, while the January palm olein contract climbed
up to 0.5 percent.
    Palm oil prices are impacted by the performances of related
edible oils as they compete for a share of the global vegetable
oils market. 
    
 Palm, soy and crude oil prices at 0500 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2742  -13.00    2730    2742      31
 MY PALM OIL       NOV7     2736  -12.00    2715    2736    1915
 MY PALM OIL       DEC7     2739  -10.00    2718    2740    9232
 CHINA PALM OLEIN  JAN8     5628  +28.00    5612    5672  325238
 CHINA SOYOIL      JAN8     6154  -34.00    6140    6212  268552
 CBOT SOY OIL      DEC7    33.56   +0.11    33.4   33.57    8927
 INDIA PALM OIL    SEP7   547.60   +0.10  547.00     548       8
 INDIA SOYOIL      OCT7    674.9   -2.25     673     676    2420
 NYMEX CRUDE       NOV7    52.15   +0.27   52.03   52.18   15188
 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 = 4.2175 ringgit)
($1 = 65.5200 Indian rupees)
($1 = 6.6300 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 

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