January 26, 2018 / 5:24 AM / a month ago

VEGOILS-Palm slides on stronger ringgit, soyoil gains curb losses

    * Palm in line for second day of declines
    * Market however up 1.8 percent on-week so far
    * Palm may drop to 2,462 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Jan 26 (Reuters) - Malaysian palm oil futures
slipped on Friday, on track for a second straight session of
declines, as a stronger ringgit dented sentiment, but overnight
gains in soyoils capped further losses.
    A stronger ringgit, palm's currency of trade, usually
makes the tropical oil more expensive for foreign buyers. The
ringgit surged to its highest in nearly two years on Friday, and
was last up 0.3 percent at 3.8730 per dollar.     
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.2 percent
to 2,489 ringgit ($642.65) a tonne at the midday break.
    However, palm futures gained 1.8 percent this week, as it
hovered around a one-week top during an upward trend for three
consecutive sessions.
    Trading volumes stood at 11,033 lots of 25 tonnes each at
noon.
    "The market is still under pressure on an extremely firm
ringgit today, but its downside is expected to be limited
borrowing strength from U.S. soyoils," said a Kuala Lumpur-based
trader.
    Palm declined over 1 percent in its previous trading session
on the back of ringgit's gains. The ringgit strengthened against
the dollar following a move by Malaysia's central bank to raise
key interest rates for the first time in 3-1/2 years on
Thursday.
    Palm oil prices are also impacted by performances in other
edible oils, as they compete for a share in the global vegetable
oils market. 
    The March soybean oil contract on the Chicago Board
of Trade gained as much as 0.8 percent, while the May soybean
oil on the Dalian Commodity Exchange climbed up to 0.7
percent.
    In other related edible oils, the Dalian May palm oil
contract edged up to 0.2 percent. 
    Palm oil may drop to 2,462 ringgit, as it has failed to
break a resistance at 2,519 ringgit per tonne, said Wang Tao, a
Reuters market analyst for commodities and energy technicals.

    
    Palm, soy and crude oil prices as of 0456 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2488   -2.00    2488    2502      51
 MY PALM OIL       MAR8     2487   -6.00    2487    2504     494
 MY PALM OIL       APR8     2489   -4.00    2488    2506    6449
 CHINA PALM OLEIN  MAY8     5240   +8.00    5202    5258  267254
 CHINA SOYOIL      MAY8     5810  +34.00    5764    5816  262210
 CBOT SOY OIL      MAR8    32.68   +0.18    32.5   32.76    5875
 INDIA PALM OIL    JAN8   562.20   -0.30  560.70   566.9     544
 INDIA SOYOIL      FEB8    746.3   +1.80   745.4   749.8   37080
 NYMEX CRUDE       MAR8    65.32   -0.19   64.91   65.53   32098
  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 = 3.8730 ringgit)
($1 = 63.5100 Indian rupees)
($1 = 6.3250 Chinese yuan)

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