The Edge Markets (28/12/2017) - KUALA LUMPUR (Dec 28): Malaysian palm oil futures declined in early trade on Thursday, after hitting their highest level in more than a week in the previous session, as ample supplies dented sentiment.

Other related edible oils were trading largely flat, with March soybean oil contract on the Chicago Board of Trade and May soybean oil on the Dalian Commodity Exchange edging up 0.1% each.

The Dalian January palm oil contract was up 0.4%.

Palm oil prices are also impacted by movements in other edible oils, as they compete for a share of the global vegetable oils market.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 0.3% at RM2,531 (US$621.10) a tonne at the midday break.

It had risen to its highest level in over a week in the previous session, and is up 3.3% for the week.

Trading volumes were thin at 6,931 lots of 25 tonnes each at the midday break.

"Soyoil on China's Dalian Commodity Exchange and the Chicago Board of Trade are only slightly up, and year-end stocks are still very high," said a futures trader from Kuala Lumpur.

"Palm's prices can't go up very high ... though next month's production will be down."

Palm oil production is set for a decline until the first quarter of next year, in line with seasonal trend. It fell 3.3% to 1.94 million tonnes in November.

Prices of the tropical oil however have slumped since the start of November on the back of rising inventory levels and weak demand. Exports from Malaysia fell 11.9% to 1.35 million tonnes in November, but has improved so far in December.

Demand rose about 1% during Dec. 1-25 versus a month earlier, data released by cargo surveyors Intertek Testing Services (ITS) and Societe Generale de Surveillance (SGS) showed on Tuesday.

Palm, soy and crude oil prices as of 0501 GMT

Contract                                 Month      Last    Change     Low    High    Volume

MY PALM OIL                    JAN8       2468       -6.00        2440     2468      59

MY PALM OIL                    FEB8       2503      -8.00         2480     2505     567

MY PALM OIL                    MAR8      2531      -7.00         2513     2533    4426

CHINA PALM OLEIN         MAY8      5244     +22.00      5218     5262    202768

CHINA SOYOIL                 MAY8      5694      +4.00       5680      5734    195784

CBOT SOY OIL                 MAR8      33.31      +0.05       33.08     33.32    2747

INDIA PALM OIL                DEC7      555.10     +0.30       554.90   555.7      24

INDIA SOYOIL                   JAN8       721.8      +0.20       721        722.2      930

NYMEX CRUDE                 FEB8       59.76     +0.12        59.52      59.79    15033

Palm oil prices in Malaysian ringgit per tonne

CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.0750)

(US$1 = 64.1750 Indian rupees)

(US$1 = 6.5420 Chinese yuan)