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VEGOILS-Palm tumbles on ringgit rally, market slow awaiting fresh data
September 8, 2017 / 5:58 AM / 16 days ago

VEGOILS-Palm tumbles on ringgit rally, market slow awaiting fresh data

    * Palm oil down 0.5 pct as ringgit strengthens
    * Market slow ahead of industry data and conference -trader
    * Traders mixed on impact of EU decision

    By Liz Lee
    KUALA LUMPUR, Sept 8 (Reuters) - Malaysian palm oil futures
fell in Friday's morning session, dropping back from a
6-1/2-month high hit in the previous session as a strengthening
ringgit dragged on the tropical oil.
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange dropped 0.5
percent to 2,768 ringgit ($661.73) by the midday break.
    Trading volumes were thin, at 18,852 lots of 25 tonnes each.
    A Kuala Lumpur-based futures trader said while the ringgit
was a driving factor, trading was also slow as the market awaits
production data and an industry conference next week.
    "Trading seems slow ahead of next week's data and the
Globoil India conference. The market is lower today mostly on
the further jump in ringgit," the trader said.    
    The Malaysian Palm Oil Board is due to release August
production and export data next week on Monday.
    The ringgit has been gaining strength for the past four
days. It rose another 0.6 percent on Friday. A more expensive
ringgit makes palm oil less attractive to buyers of the tropical
oil holding foreign currencies.
    Palm rose to a 6-1/2-month high at 2,782 ringgit a tonne on
Thursday as the European Union (EU) mulled action on
anti-dumping duties.
    Traders were still digesting the EU's late vote to reopen
its biodiesel market to Argentina, and maintain import duties
for Indonesian producers. 
    "I think (the decision) is not positive for palm as it will
mean less palm biodiesel export, since the EU did not lower
tariffs for Indonesian biodiesel," the Kuala Lumpur trader said.
    Another trader said the impact from the EU decision was
neutral. "Although palm slid in morning trade, it is actually
holding the fort well. Any bearish news could have been factored
in," the second trader said. 
    In related oils, the Chicago Board of Trade soybean oil
contract rose 0.7 percent. 
    January soybean oil on the Dalian Commodity Exchange
 was down 0.5 percent, while January palm olein 
 was up 0.04 percent. 
    
 Palm, soy and crude oil prices at 0552 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       SEP7     2759    -9.00    2757   2759      35
 MY PALM OIL       OCT7     2763   -12.00    2758   2770     222
 MY PALM OIL       NOV7     2768   -14.00    2762   2777    8436
 CHINA PALM OLEIN  JAN8     5528    +2.00    5516   5578  448478
 CHINA SOYOIL      JAN8     6340   -28.00    6330   6416  399236
 CBOT SOY OIL      DEC7    35.61    +0.00   35.43  35.76    5682
 INDIA PALM OIL    SEP7   530.00    +1.50  527.50  532.4     612
 INDIA SOYOIL      SEP7      663    +1.95  661.15  664.6    4080
 NYMEX CRUDE       OCT7    49.23    +0.14   49.07  49.26   22972
 
 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 = 4.1830 ringgit)
    ($1 = 63.89 Indian rupees)
    ($1 = 6.45 Chinese yuan)   

 (Reporting by Liz Lee; Editing by Tom Hogue)
  
 
 

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