VEGOILS-Palm declines on weaker related oils, demand concerns
* Continued Sino-U.S. trade tension weighs on market -
trader
* Palm may fall to 2,165 ringgit/tonne - Technicals
By Emily Chow
KUALA LUMPUR, Aug 16 (Reuters) - Malaysian palm oil futures
fell in first-half trade on Thursday, weighed down by weakness
in related edible oils on China's Dalian Commodity Exchange and
prospects of slowing demand as trade and currency concerns still
loom large, said traders.
The benchmark palm oil contract for November delivery
on the Bursa Malaysia Derivatives Exchange was down
0.5 percent at 2,205 ringgit ($538.20) a tonne at the midday
break.
Trading volumes stood at 20,451 lots of 25 tonnes each at
noon. (1FCPO-TOT)
"Looks like the market is reacting towards trade tension and
lower exports," said a Kuala Lumpur-based trader, referring to
the ongoing U.S.-China trade spat.
"Until the tension is resolved, the market will be volatile.
The prospect of weaker exports is also pressuring the market."
China said on Thursday it would hold a fresh round of trade
talks with the United States in Washington later this month,
offering hope for progress in resolving a conflict that has set
world markets on edge.
Meanwhile, traders are also concerned that palm oil exports
will be impacted by sliding emerging-market currencies, as
reduced purchasing power cuts into imports into countries like
Turkey and India.
Malaysia's palm oil shipments in the first half of August
fell from a month earlier, cargo surveyor data showed.
Inspection company AmSpec Agri Malaysia reported a 14.6 percent
decline and Societe Generale de Surveillance an 11.1 percent
fall.
The January soybean oil contract on China's Dalian Commodity
Exchange fell 0.9 percent, while the Dalian January palm
oil contract slipped 0.7 percent.
In other related oils, the Chicago December soybean oil
contract rose 0.6 percent.
Palm oil prices are impacted by movements of other edible
oils, as they compete for a share in the global vegetable oils
market.
Palm oil may fall to 2,165 ringgit per tonne, as an
immediate support at 2,192 ringgit does not seem to hold, said
Wang Tao, a Reuters market analyst for commodities and energy
technicals.
Palm, soy and crude oil prices at 0512 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP8 2171 -9.00 2167 2175 626
MY PALM OIL OCT8 2187 -8.00 2181 2190 6180
MY PALM OIL NOV8 2205 -11.00 2201 2210 8527
CHINA PALM OLEIN JAN9 4876 -34.00 4800 4898 289674
CHINA SOYOIL JAN9 5826 -54.00 5778 5878 381954
CBOT SOY OIL DEC8 28.36 +0.16 28.1 28.36 4839
INDIA PALM OIL AUG8 594.30 -1.60 593.80 595.7 22
INDIA SOYOIL AUG8 733 +0.75 730.4 733.05 90
NYMEX CRUDE SEP8 65.10 +0.09 64.43 65.25 33091
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 = 4.0970 ringgit)
($1 = 70.2150 Indian rupees)
($1 = 6.8918 Chinese yuan)
(Reporting by Emily Chow; Editing by Subhranshu Sahu)
