May 2, 2018 / 5:16 AM / 25 days ago

VEGOILS-Palm up after six days of falls, supported by weaker ringgit

    * Palm gains on correction after pvs session's sharp drop -
trader
    * Ringgit falls to weakest in two months

    By Emily Chow
    KUALA LUMPUR, May 2 (Reuters) - Malaysian palm oil futures
rose in early trade on Wednesday, in line for its first day of
gains in seven, correcting from a sharp drop in the previous
session and supported by a weaker ringgit.
    Weakness in the ringgit, palm's currency of trade,
typically makes the tropical oil cheaper for holders of foreign
currencies, lending support to demand. 
    The ringgit weakened around noon on Wednesday to its lowest
level against the dollar since March 1, and was last down 0.1
percent at 3.9250. It has steadily declined in the past month,
and has lost 1.6 percent of its value since the start of April.
    The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to
2,373 ringgit ($604.59) a tonne at the midday break.
    Trading volumes stood at 12,860 lots of 25 tonnes each at
the midday break.
    "We're seeing some upside today, as we saw a sharp drop over
the last three days," said a futures trader in Kuala Lumpur.
    "There is also some rebound on a weak ringgit," he added. 
    Palm had fallen to a two-week low in its previous session,
and was down 1.3 percent last week as traders turned bearish
over weak export demand.    
    Malaysian palm oil product exports fell 5.7 percent for the
full month of April versus March, inspection company AmSpec Agri
Malaysia reported. Meanwhile, cargo surveyor Societe Generale de
Surveillance showed a 4.5 percent decline for the same time
period as Indian demand weakened.
    In other related oils, the Chicago July soybean oil contract
 rose 0.7 percent, while the September soybean oil on
China's Dalian Commodity Exchange was trading flat at
around 0500 GMT.
    The Dalian September palm oil contract declined 0.1
percent. 
    Palm oil is impacted by movements in rival edible oils as
they compete for a share in the global vegetable oils market. 
    
    Palm, soy and crude oil prices, as of 0452 GMT
 Contract           Month    Last  Change     Low   High  Volume
 MY PALM OIL       MAY8      2340  +16.00    2340   2340       1
 MY PALM OIL       JUN8      2371  +11.00    2366   2377    1276
 MY PALM OIL       JUL8      2373  +11.00    2367   2378    5491
 CHINA PALM OLEIN  SEP8      4976   -8.00    4950   4994  125844
 CHINA SOYOIL      SEP8      5736   +0.00    5682   5756  178778
 CBOT SOY OIL      JUL8     30.53   +0.00   30.33  30.55    4512
 INDIA PALM OIL    MAY8    642.30   +1.70  642.30  643.3      61
 INDIA SOYOIL      MAY8     758.2   -0.90   757.5  758.2     160
 NYMEX CRUDE       JUN8     67.52   +0.27   67.35  67.65   27674
  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 = 3.9250 ringgit)
($1 = 66.7350 Indian rupees)
($1 = 6.3586 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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