April 6, 2018 / 5:37 AM / 8 months ago

VEGOILS-Palm slips from 1-month top, tracking U.S. soyoil losses

    * Palm hits fresh 1-mth high of 2,483 rgt/T in early trade
    * Expectations of rising production also weigh on market -
    * Palm gains 1.8 pct on the week 

    By Emily Chow
    KUALA LUMPUR, April 6 (Reuters) - Malaysian palm oil futures
slipped on Friday from a fresh one-month high hit in early trade
as it tracked losses in U.S. soyoil on the Chicago Board of
    The benchmark palm oil contract for June delivery
on the Bursa Malaysia Derivatives Exchange fell 0.2 percent to
2,468 ringgit ($638.22) a tonne at the midday break.
    Palm earlier rose to 2,483 ringgit a tonne, its highest
since March 6. It has gained 1.8 percent so far this week.

    Trading volumes stood at 19,292 lots of 25 tonnes each at
    "The market is down tracking U.S. soyoil and on some
profit-taking," said a Kuala Lumpur based trader.
    Another trader said palm could be seeing some pullback
"after strong upside in the last two days" and that the market
was also weighed down by expectations of higher production.
    Palm prices have been supported by news of China's increase
in tariffs by up to 25 percent on 106 U.S. products including
soybeans, as the spread between palm and soyoil is expected to
widen as the latter becomes more costly in Beijing.
    The market is also awaiting on official data announcement
from industry regulator the Malaysian Palm Oil Board, which is
scheduled to release end-March data on April 10. 
    Palm oil stockpiles in Malaysia, the world's second largest
producer of the tropical oil, are expected to have slipped to
their lowest in five months, down 8.6 percent from February to
2.27 million tonnes, according to a Reuters poll on Thursday.

    The survey also showed exports to have risen to the highest
in over a-year-and-a-half at 1.57 million tonnes, up 19.3
percent from February. Meanwhile production is seen up 11.3
percent to 1.49 million tonnes in March, its first monthly gain
in five. 
    In related oils, the Chicago Board of Trade's May soybean
oil contract declined 0.5 percent, in line with soybean
futures losses on market fears that a trade war between the
world's two largest economies could hit demand for U.S. soy.

    China's Dalian Commodity Exchange is closed on Friday for a
national holiday. 
    Palm oil prices are impacted by movements in rival edible
oils as they compete for a share in the global vegetable oils
    Palm, soy and crude oil prices as of 0518 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       APR8        0   +0.00       0       0       0
 MY PALM OIL       MAY8     2459  -10.00    2452    2479    1968
 MY PALM OIL       JUN8     2468   -4.00    2459    2483    7447
 CHINA PALM OLEIN  SEP8        0   +0.00       0       0       0
 CHINA SOYOIL      SEP8        0   +0.00       0       0       0
 CBOT SOY OIL      MAY8    31.61   -0.17   31.46   31.75    5626
 INDIA PALM OIL    APR8   653.70   -1.60  653.60   655.2      90
 INDIA SOYOIL      APR8    779.9   -0.40  778.65   779.9    1030
 NYMEX CRUDE       MAY8    63.11   -0.43   62.82   63.79   49233
  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 = 3.8670 ringgit)
($1 = 65.0100 Indian rupees)
($1 = 6.3045 Chinese yuan)

 (Reporting by Emily Chow; Editing by Amrutha Gayathri)
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