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)


2018-09-14 13:14:25

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