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VEGOILS-Palm trades at 6-month lows on stronger output, weaker overnight soy

* Palm fell to six-month low of 2,568 rgt/T

* Market sees fourth decline in five sessions

(Updates with closing prices)

By Emily Chow

KUALA LUMPUR, April 12 (Reuters) – Malaysian palm oil

futures fell on Wednesday, falling to their lowest in six

months, tracking weaker overnight soyoil on the Chicago Board of

Trade and on concerns about higher output.

The benchmark contract for June delivery on the

Bursa Malaysia Derivatives Exchange was down 0.9 percent at

2,589 ringgit ($ 585.08) a tonne at the close of trade. It fell

to 2,568 ringgit earlier in the afternoon session, its lowest

since Oct. 11. The benchmark recorded its fourth decline in five


Traded volumes stood at 54,650 lots of 25 tonnes each at the

end of the trading day.

“Overnight weakness in soyoil is putting pressure on palm

oil prices today,” said a futures trader from Kuala Lumpur.

Concerns about growing palm output also weighed on the

market, another trader said.

Production of the tropical oil in the world’s second largest

producer is seen rising in April, as the lingering effects of

the crop-damaging El Nino wear off and as output rises in line

with seasonal trends.

Data from industry regulator, the Malaysian Palm Oil Board

(MPOB), showed that output surged 16.3 percent to 1.46 million

tonnes in March, its first monthly gain since September, and its

strongest on-month rise in more than a year. (MYPOMP-CPOTT)

The data also showed that end-stocks rose 6.5 percent

on-month to 1.55 million tonnes, while exports climbed 14.3

percent to 1.27 million tonnes.

Palm oil prices are also impacted by movements in rival

edible oils, as they compete for a share in the global vegetable

oils market. Soybean oil on the Chicago Board of Trade

fell as much as 1.3 percent on Tuesday on concerns of ample

supplies, before rising 0.1 percent on Wednesday.

In other related oils, the September soybean oil contract on

the Dalian Commodity Exchange was down 1.6 percent,

while the September contract for palm olein on the Dalian

Commodity Exchange fell 0.9 percent.

Palm, soy and crude oil prices at 1033 GMT

Contract Month Last Change Low High Volume

MY PALM OIL APR7 2750 -58.00 2736 2840 325

MY PALM OIL MAY7 2680 -30.00 2664 2715 2256

MY PALM OIL JUN7 2591 -23.00 2568 2619 22883

CHINA PALM OLEIN SEP7 5172 -46.00 5152 5262 714768

CHINA SOYOIL SEP7 5898 -98.00 5888 6028 726862

CBOT SOY OIL MAY7 31.1 +0.03 30.98 31.38 13541

INDIA PALM OIL APR7 514.00 +0.30 510.20 515.4 1049

INDIA SOYOIL APR7 634 +1.00 631.7 634.8 2250

NYMEX CRUDE MAY7 53.69 +0.29 53.35 53.76 74639

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 = 4.4250 ringgit)

($ 1 = 64.6800 Indian rupees)

($ 1 = 6.8925 Chinese yuan)

(Reporting by Emily Chow; Editing by Sunil Nair and Louise


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