The Edge Markets (09/01/2018) - KUALA LUMPUR (Jan 9): Malaysian palm oil futures dropped over 1% in evening trade on Tuesday, falling from a near seven-week high hit earlier, weighed down by expectations of sluggish exports.

The market also declined ahead of official data from the Malaysian Palm Oil Board, which is forecasting stockpiles rising to their highest in over two years.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 1.1% to RM2,597 (US$648.12) a tonne at the close of trade, its sharpest daily drop in almost three weeks.

Earlier in the session, it had risen to its highest since Nov. 24 at RM2,635 a tonne on stronger demand expectations and a weaker ringgit, palm's currency of trade, which typically makes the oil cheaper for foreign buyers and spurs demand.

Trading volumes stood at 45,069 lots of 25 tonnes each at the end of the trading day.

"The market weakened on rumours that exports (from Jan. 1-10) will come in flat or lower (than the corresponding period last month)," said a trader from Kuala Lumpur.

Cargo surveyors are expected to release Malaysian palm oil shipment data after 0300 GMT on Wednesday.

Official data for December stockpiles, production and exports from the Malaysian Palm Oil Board is also scheduled for release after 0430 GMT on Wednesday.

In other related edible oils, the March soybean oil contract on the Chicago Board of Trade dropped 0.2%, while the May soybean oil on the Dalian Commodity Exchange was up 0.3%.

The Dalian January palm oil contract gained 0.8%.

Palm oil prices track the performance of other edible oils, as they compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices as of 1105 GMT

Contract                       Month        Last       Change     Low     High    Volume

MY PALM OIL               JAN8          2585      -28.00        2563     2591      97

MY PALM OIL               FEB8          2602      -28.00       2593      2635    1343

MY PALM OIL               MAR8        2605      -28.00       2593      2641      21829

CHINA PALM OLEIN    MAY8       5366     +44.00       5324      5368       224360

CHINA SOYOIL            MAY8       5794     +16.00       5754      5794       232778

CBOT SOY OIL            MAR8       33.47      +0.04      33.34      33.65      7177

INDIA PALM OIL          JAN8        559.50     -2.30     558.40     564.7     922

INDIA SOYOIL             JAN8         739.9      +0.50       738.9     741.5      4380

NYMEX CRUDE           FEB8        61.88      +0.15       61.80     62.56      117107

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 = RM4.0070)

(US$1 = 63.7100 Indian rupees)

(US$1 = 6.5250 Chinese yuan)