* Palm falls to low of 1,983 rgt/T
* Weaker crude oil also weighs on market - trader
* Palm still targets 1,956-1,972 rgt/T range - techs
By Emily Chow
KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures
hit a one-week low in early trade on Thursday, in line for a
second consecutive day of losses, as they tracked weakness in
related edible oils and crude oil, said traders.
The benchmark palm oil contract for February delivery
on the Bursa Malaysia Derivatives Exchange declined
0.8 percent at 1,979 ringgit ($475.26) a tonne at the midday
break. It earlier dropped to 1,983 ringgit, its lowest since
Trading volumes stood at 22,651 lots of 25 tonnes each at
the midday break. (1FCPO-TOT)
"Palm is down mainly tracking weakness from the external
markets," said a Kuala Lumpur based trader, referring to soyoil
on the U.S. Chicago Board of Trade.
"There is ongoing concern over high (palm) stockpiles but
that is mostly factored in already. A weak ringgit, however, is
capping some losses."
A weak ringgit, palm's currency of trade, fell 0.3
percent against the dollar at 4.1640 around noon on Thursday,
making it cheaper for foreign buyers.
A Reuters poll on Wednesday also showed that Malaysia's palm
oil stocks at end-November are likely to touch the
3-million-tonne mark, their highest in recent years, as the drop
in exports outpaced lean production.
Another trader added that the palm market was also down
tracking weakness in crude oil prices. The edible oil is
impacted by movements in crude oil, as it is used as feedstock
to make biodiesel.
Oil prices fell along with weak stock markets on Thursday,
but trading was tepid ahead of a meeting by producer group OPEC
that is expected to result in a supply cut aimed at draining a
glut that has pulled down crude prices by 30 percent since
In other related oils, the Chicago December soybean oil
contract was down 0.3 percent, while the January soybean
oil contract on the Dalian Commodity Exchange fell 0.8
Meanwhile, the Dalian January palm oil contract
declined 0.3 percent.
Palm oil is impacted by movements of other edible oils, as
they compete for a share in the global vegetable oil market.
Palm oil is still targeting a range of 1,956-1,972 ringgit
per tonne, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
Palm, soy and crude oil prices at 0432 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL DEC8 0 +0.00 0 0 0
MY PALM OIL JAN9 1888 -15.00 1883 1898 810
MY PALM OIL FEB9 1979 -16.00 1979 1994 10487
CHINA PALM OLEIN JAN9 4206 -14.00 4192 4232 61352
CHINA SOYOIL JAN9 5344 -44.00 5332 5394 92958
CBOT SOY OIL DEC8 28.49 -0.08 28.49 28.49 212
INDIA PALM OIL DEC8 0.00 +0.00 0.00 0 0
INDIA SOYOIL DEC8 0 +0.00 0 0 0
NYMEX CRUDE JAN9 52.36 -0.53 52.04 53.25 52540
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 = 4.1640 ringgit)
($1 = 70.9550 Indian rupees)
($1 = 6.8774 Chinese yuan)
(Reporting by Emily Chow; Editing by Rashmi Aich)