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VEGOILS-Palm slips after 5 sessions of gains on weaker Dalian soyoil
October 10, 2017 / 6:45 AM / in 2 months

VEGOILS-Palm slips after 5 sessions of gains on weaker Dalian soyoil

    * Stronger ringgit weighs on market - trader
    * Palm still targets 2,765-2,791 rgt/T range - technicals
    * Malaysia end-Sept stockpiles rise to 2 mln tonnes - MPOB

    By Emily Chow and Tavleen Tarrant
    KUALA LUMPUR, Oct 10 (Reuters) - Malaysian palm oil futures
slipped in early trade on Tuesday after five straight sessions
of gains, tracking weakness in related edible oils on China's
Dalian Commodity Exchange.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.1 percent at 2,733 ringgit ($647.32) a tonne at the midday
break.
    Traded volumes stood at 14,850 lots of 25 tonnes each at
Tuesday noon.
    "Palm oil is most likely down following the Dalian Commodity
Exchange," said a futures trader from Kuala Lumpur.
    The January soybean oil contract on China's Dalian Commodity
Exchange fell 0.7 percent, while the January palm olein
contract declined 0.6 percent.
    Another trader said a stronger ringgit also weighed
on palm prices, as this makes the tropical oil more expensive
for holders of foreign currencies.
    The ringgit, the currency of trade for palm oil, hit a
one-week high against the dollar and was last up 0.2 percent at
4.2230 per dollar. 
    Rising inventory levels in Malaysia, the world's second
largest producer of the tropical oil, could further weigh on
palm prices. 
    Inventory levels at the end of September rose 4 percent from
a month earlier to 2.02 million tonnes, data from industry
regulator the Malaysian Palm Oil Board (MPOB) showed on Tuesday.

    Output declined 1.7 percent to 1.78 million tonnes, while
exports rose 1.8 percent to 1.52 million tonnes.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade was down 0.2
percent. 
    Palm oil may break resistance at 2,738 ringgit per tonne and
rise into a range of 2,765-2,791 ringgit, according to Reuters
market analyst for commodities and energy technicals Wang Tao. 

          
 Palm, soy and crude oil prices at 0619 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2711  -28.00    2711    2711       2
 MY PALM OIL       NOV7     2734   -4.00    2730    2739     667
 MY PALM OIL       DEC7     2733   -2.00    2726    2739    4820
 CHINA PALM OLEIN  JAN8     5546  -42.00    5528    5582  318282
 CHINA SOYOIL      JAN8     6076  -44.00    6064    6120  230650
 CBOT SOY OIL      DEC7    33.18   +0.00   33.11   33.25    4029
 INDIA PALM OIL    OCT7   540.00   -1.20  539.00   543.7     187
 INDIA SOYOIL      OCT7    658.7   -1.15   658.7     663    4210
 NYMEX CRUDE       NOV7    49.61   +0.03   49.54   49.73   14702
 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 = 4.2220 ringgit)
($1 = 65.2650 Indian rupees)
($1 = 6.5937 Chinese yuan)
    

 (Reporting by Emily Chow and Tavleen Tarrant; Editing by
Subhranshu Sahu)
  
 
 

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