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VEGOILS-Palm declines on weaker soyoil, profit-taking

* 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

said.

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

shores.

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

foreign currencies.

In other related oils, the Chicago May soybean oil contract

fell 0.9 percent on Wednesday, and was last slightly down

0.1 percent.

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)