VEGOILS-Palm hits four-year high before easing on weaker soyoil

Reuters

* Palm hits intraday high of 3,106 rgt/T

* Market down on weak related oils, stronger ringgit -

Trader

* Signals are mixed for palm oil - Technicals

(Updates prices)

By Emily Chow

KUALA LUMPUR, Dec 2 (Reuters) - Malaysian palm futures hit

their highest in more than four years on Friday before easing to

close in negative territory on weakness in related oils and a

stronger ringgit.

Palm oil prices often track the movements of related

vegetable oils, such as soyoil, on the Chicago Board of Trade

and China's Dalian Commodity Exchange as they compete for a

share in the global vegetable oils market.

Benchmark palm oil futures for February delivery

on the Bursa Malaysia Derivatives Exchange were down 0.1 percent

at 3,076 ringgit ($691) a tonne at the end of the trading day.

Earlier in the session, they hit their highest since Aug. 27,

2012, at 3,106 ringgit, tracking overnight soyoil strength.

Traded volumes stood at 39,998 lots of 25 tonnes each, below

the 2015 daily average of 44,600 traded lots in a day. The

market is up 1.5 percent for the week for a second straight week

of gains.

"The market opened higher on the back of stronger soyoil,

which then eased. Dalian did not appreciate much and there was

the ringgit recovery," one trader said, referring to edible oil

futures on China's Dalian Commodity Exchange.

"This gives palm a good opportunity to consolidate, but the

rally will continue on other bearish factors, such as the

weather."

The year-end monsoon season in Malaysia, the world's

second-largest palm producer, usually brings heavy rains across

the country and disrupts fruit-harvesting.

The January CBOT soybean oil contract was down 0.5

percent, while the May soybean oil contract on the Dalian

Commodity Exchange was virtually flat.

The May contract for palm olein on the Dalian Commodity

Exchange was up 1.3 percent.

A stronger ringgit also weighs down on palm oil by making it

more expensive for holders of other currencies. The ringgit,

palm's traded currency, strengthened 0.3 percent to 4.4500 per

dollar on Friday evening.

Signals are mixed for palm oil as it failed to break a

resistance at 3,093 ringgit a tonne, said Wang Tao, a Reuters

market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 1044 GMT

Contract Month Last Change Low High Volume

MY PALM OIL DEC6 3122 +5.00 3118 3122 40

MY PALM OIL JAN7 3083 +0.00 3080 3108 989

MY PALM OIL FEB7 3076 -3.00 3069 3106 23721

CHINA PALM OLEIN MAY7 6350 +84.00 6216 6372 1086610

CHINA SOYOIL MAY7 7192 -2.00 7102 7246 773626

CBOT SOY OIL JAN7 37.67 -0.29 37.49 37.93 15255

INDIA PALM OIL DEC6 557.60 +0.30 556.00 561.9 1135

INDIA SOYOIL DEC6 731.5 +1.05 730 735.5 11930

NYMEX CRUDE JAN7 50.56 -0.50 50.45 51.30 145604

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 = 4.4500 ringgit)

($1 = 68.2300 Indian rupees)

($1 = 6.8865 Chinese yuan)

(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips and

David Goodman)

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