* Market poised to snap two sessions of gains
* Weaker ringgit limited further losses - trader
By Emily Chow
KUALA LUMPUR, April 18 (Reuters) - Malaysian palm oil
futures dropped on Thursday, in line to snap two sessions of
gains, tracking weaker soyoil on the U.S. Chicago Board of Trade
and on profit-taking.
Palm's losses, however, were capped by a weaker ringgit
, its currency of trade.
The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to
2,191 ringgit ($528.97) a tonne at the midday break.
In the previous trading session, it touched a one-week top
of 2,219 ringgit on the back of a weaker ringgit.
"Palm fell today tracking the weakness in external markets,
but the weak ringgit capped some losses," said a futures trader
in Kuala Lumpur.
The market was also down on profit-taking, another trader
The ringgit weakened against the dollar this week as
investors worried the country's debt may be removed from a key
global bond index, which could see billions of dollars leave its
Malaysia could see outflows of almost $8 billion if its
bonds are downgraded by FTSE Russell, a global index provider,
Morgan Stanley said in a research note.
The ringgit, which had eased to a near three-month low in
its previous trading session, was down 0.2 percent to 4.1420
against the dollar around noon on Thursday.
A weaker ringgit makes palm oil cheaper for holders of
In other related oils, the Chicago May soybean oil contract
fell 0.9 percent on Wednesday, and was last slightly down
The May soyoil contract on the Dalian Commodity Exchange
dipped 0.4 percent, and the Dalian May palm oil contract
gained 0.1 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 0445 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY9 2114 -16.00 2108 2122 195
MY PALM OIL JUN9 2173 -16.00 2168 2184 1676
MY PALM OIL JUL9 2191 -14.00 2185 2200 6182
CHINA PALM OLEIN MAY9 4446 +2.00 4424 4468 30760
CHINA SOYOIL MAY9 5376 -20.00 5372 5418 37702
CBOT SOY OIL MAY9 28.44 -0.02 28.43 28.54 2461
INDIA PALM OIL APR9 540.30 -1.10 539.40 540.5 50
INDIA SOYOIL MAY9 720.5 +1.55 719.55 721.05 2370
NYMEX CRUDE MAY9 63.86 +0.10 63.58 63.89 6658
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 = 4.1420 ringgit)
($1 = 6.6940 Chinese yuan)
($1 = 69.4600 Indian rupees)
(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)