April 17, 2018 / 5:36 AM / 6 days ago

VEGOILS-Palm slides on slowing demand growth, weaker related oils

    * Palm in line for seventh consecutive losing session
    * Market could further decline on rising output - trader
    * Palm may fall to 2,343 rgt/T - technicals

    By Emily Chow
    KUALA LUMPUR, April 17 (Reuters) - Malaysian palm oil
futures slid to their lowest in over a month in early trade on
Tuesday, weighed down by slowing demand growth and tracking
weaker related edible oils. 
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange fell 0.5 percent to
2,358 ringgit ($606.95) a tonne at the midday break, in line for
a seventh straight day of losses.
    The market earlier fell to 2,354 ringgit, its lowest level
since March 12.
    Trading volumes stood at 20,369 lots of 25 tonnes each.
    "The market is concerned over the weaker exports pace," said
a Kuala Lumpur-based futures trader, referring to Malaysian
shipment data release on Monday. 
    "The market could see longer term declines as well as it
faces rising production."
    Exports of Malaysian palm oil products for April 1-15 rose 5
to 6 percent from the corresponding period in March, inspection
company AmSpec Agri Malaysia and cargo surveyor Societe Generale
de Surveillance reported on Monday.
    This indicates slowing demand growth, as shipments rose 25
to 32 percent from April 1-10.
    Palm oil production is also seen increasing in April, in
line with seasonal trend. Malaysia's March output was last up
17.2 percent on-month to 1.57 million tonnes, and is the highest
March production levels since 2000. MYPOMP-CPOTT 
    Another trader said palm's losses were due to overnight
declines in U.S. soyoil on the Chicago Board of Trade. Palm oil
prices are affected by movements in rival edible oils, as they
compete for a share in the global vegetable oils market.
    The Chicago Board of Trade's May soybean oil contract
 fell nearly 1 percent in trade on Monday, but was last
up 0.3 percent. 
    In other related oils, May soybean oil on China's Dalian
Commodity Exchange was down 1.3 percent, while the
Dalian May palm oil contract dropped 1 percent. 
    Palm oil may fall to 2,343 ringgit per tonne, as it has
broken a support at 2,375 ringgit, said Wang Tao, a Reuters
market analyst for commodities and energy technicals.

    
    Palm, soy and crude oil prices as of 0525 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAY8     2350  -12.00    2349    2365     284
 MY PALM OIL       JUN8     2358  -10.00    2355    2375    3249
 MY PALM OIL       JUL8     2358  -11.00    2354    2376    6873
 CHINA PALM OLEIN  SEP8     4962  -76.00    4954    5012  295668
 CHINA SOYOIL      SEP8     5756  -76.00    5746    5808  279250
 CBOT SOY OIL      MAY8    31.27   +0.09   31.19   31.32    1311
 INDIA PALM OIL    APR8   633.40   -2.70  633.00     638     147
 INDIA SOYOIL      APR8    760.9   -3.90   760.5  761.15     920
 NYMEX CRUDE       MAY8    66.53   +0.31   66.38   66.64   24463
  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 = 3.8850 ringgit)
($1 = 65.5450 Indian rupees)
($1 = 6.2814 Chinese yuan)   

 (Reporting by Emily Chow; editing by Sunil Nair)
  
 
 
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