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VEGOILS-Palm falls over 1 pct on overnight weakness in U.S. soyoil

* Market falls to one-week low of 2,140 rgt/T

* Bearish production outlook also weighing on market -


By Emily Chow

KUALA LUMPUR, April 24 (Reuters) - Malaysian palm oil

futures fell more than 1 percent on Wednesday, tracking

overnight weakness in the U.S. soyoil and on prospects of a

slower-than-expected fall in monthly palm output.

The benchmark palm oil contract for July delivery

on the Bursa Malaysia Derivatives Exchange fell 1.1 percent to

2,146 ringgit ($519.49) a tonne at noon, its sharpest fall in

two weeks.

It earlier fell to a low of 2,140 ringgit, its weakest level

since April 16.

"The sharp drop of over 2 percent in soybean oil futures

overnight prompted palm prices to open lower," said a Kuala

Lumpur-based futures trader.

Another trader said that while April production in Malaysia

will likely see a monthly fall, the levels could come in higher

than expected, pressuring the markets.

Official data showed that Malaysian palm oil production rose

to 1.67 million tonnes in March, up 8.3 percent from February.

The levels are at their highest for March in Malaysia, according

to Refinitiv Eikon records going back to January 2000.


In other related news, the Chicago May soybean oil contract

dropped 2.2 percent on Tuesday over bearish fundamentals,

but was last up 0.2 percent.

The U.S. Department of Agriculture had projected U.S.

soybean stocks at the end of the 2018/19 marketing year will

more than double from the previous year, while top soybean

importer China grapples with African swine fever, raising

concern about a drop in Chinese demand for feedstuffs including

soy and corn.

Meanwhile, the May soyoil contract on the Dalian Commodity

Exchange fell 1.4 percent, and the Dalian May palm oil

contract declined 1.3 percent.

Palm oil prices are affected by movements in soyoil, as they

compete for a share in the global vegetable oil market.

Palm, soy and crude oil prices at 0433 GMT

Contract Month Last Change Low High Volume

MY PALM OIL MAY9 2053 -26.00 2044 2080 93

MY PALM OIL JUN9 2128 -24.00 2121 2134 1160

MY PALM OIL JUL9 2146 -24.00 2140 2152 6461

CHINA PALM OLEIN MAY9 4310 -56.00 4308 4372 19708

CHINA SOYOIL MAY9 5256 -74.00 5254 5334 53366

CBOT SOY OIL MAY9 28.12 +0.06 28.1 28.17 937

INDIA PALM OIL APR9 536.10 -2.70 534.00 537.4 76

INDIA SOYOIL MAY9 737.5 -1.35 735.7 737.9 2020

NYMEX CRUDE JUN9 65.92 -0.38 65.87 66.18 27358

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 = 4.1310 ringgit)

($1 = 6.7229 Chinese yuan)

($1 = 69.7860 Indian rupees)

(Reporting by Emily Chow; Editing by Shreejay Sinha)