March 24, 2018
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KUALA LUMPUR (Jan 12): Malaysian palm oil futures fell by more than 1% on Friday evening, extending a sharp decline from the previous session to hit their lowest in nearly two weeks, tracking weakness in related edible oils as the ringgit strengthened.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was down 1.2% at 2,536 ringgit (US$638.79) a tonne at the end of the trading day for a second daily decline. 

Earlier in the session, it fell to the weakest since Jan 2 at 2,525 ringgit. 

For the week, palm was down 2.2%, its first weekly decline in three.

Trading volumes stood at 46,226 lots of 25 tonnes each at the close of trade.

“Palm is down on soyoil and Dalian palm olien. It is also technically following through the selling from yesterday’s weak closing,” one Kuala Lumpur-based trader said. 

Palm dropped more than 2% the previous day on gains in the ringgit, the tropical oil’s currency of trade. 

The ringgit has strengthened 11.5% against the dollar since the start of 2017 and was up 0.4% at 3.9700 on Friday evening.

A stronger ringgit usually makes palm oil more expensive for foreign buyers.  

In related edible oils, the March soybean oil contract on the Chicago Board of Trade declined 0.9% in overnight trade and was last down 0.1% on Friday.

The May soybean oil contract on the Dalian Commodity Exchange fell 0.9%, while the Dalian January palm oil contract was down 1.4%. 

Palm oil tracks the performance of other edible oils that compete for a share in the global vegetable oils market.

Palm oil could break a support at 2,555 ringgit a tonne and fall to the next support at 2,519 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

 Palm, soy and crude oil prices as of 1046 GMT

 Contract           Month    Last  Change     Low   High  Volume
 MY PALM OIL       JAN8      2510  -35.00    2510   2530      76
 MY PALM OIL       FEB8      2538  -35.00    2515   2546    1261
 MY PALM OIL       MAR8      2545  -31.00    2528   2558   18536
 CHINA PALM OLEIN  MAY8      5262  -74.00    5250   5318  297810
 CHINA SOYOIL      MAY8      5738  -50.00    5722   5794  311992
 CBOT SOY OIL      MAR8     33.12   +0.00   33.08  33.21    4326
 INDIA PALM OIL    JAN8    558.00   -1.50  554.50  559.1     577
 INDIA SOYOIL      JAN8       741   -0.85     740  742.5    1330
 NYMEX CRUDE       FEB8     63.55   -0.25   63.17  63.72  114441

 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
(US$1 = 3.9700 ringgit)
(US$1 = 63.5050 Indian rupees)
(US$1 = 6.4810 Chinese yuan)

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