September 14, 2018 / 11:15 AM / 2 months ago

VEGOILS-Palm falls to 2-week low on rising stocks concerns

    * Palm down nearly 2 percent on week
    * Stronger ringgit, weaker related edible oils weigh -
trader
    * Market closed on Sept. 17

 (Updates with closing prices)
    By Emily Chow
    KUALA LUMPUR, Sept 14 (Reuters) - Malaysian palm oil futures
fell to a two week low on Friday over concerns of rising stocks,
a stronger ringgit and weaker related edible oils. 
    A stronger ringgit usually makes palm oil more expensive for
holders of foreign currencies. The ringgit, palm's currency of
trade, was up 0.1 percent to 4.1370 against the dollar on Friday
evening. 
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange was down
0.9 percent at 2,222 ringgit ($537.10) a tonne on Friday
evening, its weakest since Aug. 30.
    The market is also down 1.9 percent for the week, its
sharpest weekly decline since mid-July.
    Trading volumes stood at 56,902 lots of 25 tonnes each at
the end of the trading day. 1FCPO-TOT
    "There are talks of high stocks and rising production," said
a Kuala Lumpur based trader. "Exports will be good but not
enough (to reduce stocks) so stocks are still expected to rise."
    Another futures trader earlier said palm eased due to
overnight weakness in soyoil on the Chicago Board of Trade and
weak China's Dalian Commodity Exchange, along with a firmer
ringgit.  
    Malaysian markets will be closed on Monday for a national
holiday, and will resume trading on Sept. 18.
    In other related oils, the Chicago September soybean oil
contract fell 0.7 percent on Thursday after U.S.
President Donald Trump said the United States was under no
pressure to make a trade deal with China, the biggest buyer of
the oilseed.
    Meanwhile the January soybean oil contract on China's Dalian
Commodity Exchange dropped 0.3 percent, and the Dalian
January palm oil contract was 0.7 percent lower.  
    Palm oil prices are impacted by movements of other edible
oils, as they compete for a share in the global vegetable oils
market.
        
     Palm, soy and crude oil prices at 1108 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       SEP8     2206   +1.00    2205    2219     206
 MY PALM OIL       OCT8     2211  -16.00    2207    2233    2543
 MY PALM OIL       NOV8     2222  -21.00    2222    2243   19999
 CHINA PALM OLEIN  JAN9     4858  -34.00    4832    4890  299384
 CHINA SOYOIL      JAN9     5836  -20.00    5830    5866  322484
 CBOT SOY OIL      SEP8    27.44   +0.00       0       0       5
 INDIA PALM OIL    SEP8   596.40   +0.70  594.00   596.4     585
 INDIA SOYOIL      SEP8      735   -1.90   733.5  736.55    2770
 NYMEX CRUDE       OCT8    68.89   +0.30   68.66   69.14   90814
  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 = 4.1370 ringgit)
($1 = 71.9300 Indian rupees)
($1 = 6.8516 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair and Mark
Potter)
  
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