MARKET DEVELOPMENT
VEGOILS-Palm Oil Declines on Weaker Rival Oils, Stronger Ringgit
VEGOILS-Palm Oil Declines on Weaker Rival Oils, Stronger Ringgit
* Market drops for second day running
* Palm falls on weaker CBOT, Dalian soyoil
* Ringgit firms slightly against dollar (Updates prices)
09/12/2016 (Reuters) - Malaysian palm oil futures fell on Thursday to a second consecutive day of losses, tracking weaker-performing rival oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
Palm was also dragged down by a strengthening ringgit MYR= , making the tropical oil more expensive for holders of foreign currencies. The ringgit, palm's currency of trade, rose 0.2 percent to 4.4200 per dollar on Thursday evening, its strongest in two weeks.
The ringgit has slid about 5 percent since Nov. 9 as foreign investors flee Malaysia's bond market after yields spiked on speculation that President-elect Donald Trump could impose stimulus policies that stoke U.S. inflation. A weaker ringgit usually lends support to palm.
Benchmark palm oil futures for February delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.9 percent to close at 3,113 ringgit ($704) a tonne.
Traded volumes stood at 27,541 lots of 25 tonnes each, below the 2015 average of 44,600 lots a day.
"Palm is down on CBOT soyoil, Dalian and the ringgit," said one Kuala Lumpur trader, referring to the performance of related oils that affect palm prices because they compete for a share in the global vegetable oils market.
"Trades are slow during the holiday season and there is some book-squaring going on," he said, referring to traders reducing market exposure.
In related edible oils, the January soybean oil contract BOv1 on the CBOT was down 0.8 percent, while the May soybean oil contract on the Dalian Commodity Exchange DBYcv1 fell 0.8 percent.
The May palm olein contract on the Dalian Commodity Exchange DCPcv1 dropped 2 percent.
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 = 4.4200 ringgit)
($1 = 67.3379 Indian rupees)
($1 = 6.8755 Chinese yuan)
* Palm falls on weaker CBOT, Dalian soyoil
* Ringgit firms slightly against dollar (Updates prices)
09/12/2016 (Reuters) - Malaysian palm oil futures fell on Thursday to a second consecutive day of losses, tracking weaker-performing rival oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
Palm was also dragged down by a strengthening ringgit MYR= , making the tropical oil more expensive for holders of foreign currencies. The ringgit, palm's currency of trade, rose 0.2 percent to 4.4200 per dollar on Thursday evening, its strongest in two weeks.
The ringgit has slid about 5 percent since Nov. 9 as foreign investors flee Malaysia's bond market after yields spiked on speculation that President-elect Donald Trump could impose stimulus policies that stoke U.S. inflation. A weaker ringgit usually lends support to palm.
Benchmark palm oil futures for February delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.9 percent to close at 3,113 ringgit ($704) a tonne.
Traded volumes stood at 27,541 lots of 25 tonnes each, below the 2015 average of 44,600 lots a day.
"Palm is down on CBOT soyoil, Dalian and the ringgit," said one Kuala Lumpur trader, referring to the performance of related oils that affect palm prices because they compete for a share in the global vegetable oils market.
"Trades are slow during the holiday season and there is some book-squaring going on," he said, referring to traders reducing market exposure.
In related edible oils, the January soybean oil contract BOv1 on the CBOT was down 0.8 percent, while the May soybean oil contract on the Dalian Commodity Exchange DBYcv1 fell 0.8 percent.
The May palm olein contract on the Dalian Commodity Exchange DCPcv1 dropped 2 percent.
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 = 4.4200 ringgit)
($1 = 67.3379 Indian rupees)
($1 = 6.8755 Chinese yuan)