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VEGOILS-Palm falls due to strong ringgit, reversing Monday's gains

* Palm falls, giving up some of Monday's gains

* Malaysian ringgit advances to 3.6600 per dollar

By Anuradha Raghu

KUALA LUMPUR, March 24 (Reuters) - Malaysian palm oil

futures fell on Tuesday as a weak technical outlook, a stronger

ringgit and worries about lacklustre demand from major buyers

stopped the contract from adding to the previous session's


By the close, the benchmark June contract on the

Bursa Malaysia Derivatives had lost 1.37 percent to 2,156

ringgit ($591) a tonne.

The price climbed as high as 2,208 ringgit on Monday after

Indonesia's plan to impose levies on crude palm exports

triggered hasty buying from the top producer. However, some

traders warned those gains were unsustainable.

"The market opened marginally higher, but there was no

follow-through to what it did yesterday," said one palm trader

with a foreign commodities brokerage in Malaysia.

"Technically, the market is under pressure and it could not

go beyond 2,200 ringgit. Exports in the first 20 days did not

improve -- it's a global scenario, where people are not rushing

to buy commodities."

Total traded volume stood at 49,223 lots of 25 tonnes, above

the average 35,000 lots.

Indonesia is planning a charge of $50 on every tonne of

crude palm oil (CPO) shipped at a zero export tax rate, with the

funds going to help pay for more biodiesel subsidies. The

measure has to be approved by President Joko Widodo.

Analysts say the potential levy may weigh on CPO prices in

Indonesia in the short term, but could also stoke more domestic

biodiesel consumption if implemented properly, which would help

underpin prices.

A stronger ringgit curbed buying interest from overseas

buyers on the Malaysian market.

Most emerging Asian currencies extended gains on Tuesday

because of uncertainty over the timing of U.S. interest rate

rises, with the ringgit rising to 3.6600 against the

U.S. dollar by 0530 GMT.

Brent crude reversed early losses to trade back towards $57

a barrel on Tuesday, as a weaker dollar overshadowed signs of

slowing growth in China and Saudi Arabian oil production close

to an all-time high.

In competing vegetable oil markets, the U.S. soyoil contract

for May fell 0.19 percent, while the most active

September soybean oil contract on the Dalian Commodity

Exchange rose 0.88 percent.

Palm, soy and crude oil prices at 1039 GMT

Contract Month Last Change Low High Volume

MY PALM OIL APR5 2166 -23.00 2150 2195 386

MY PALM OIL MAY5 2161 -30.00 2153 2196 7802

MY PALM OIL JUN5 2156 -30.00 2148 2192 27701

CHINA PALM OLEIN SEP5 4730 +28.00 4708 4788 702168

CHINA SOYOIL SEP5 5470 +34.00 5452 5518 708316

CBOT SOY OIL MAY5 31.09 -2.90 30.93 31.20 4692

INDIA PALM OIL MAR5 438.20 -2.90 436.50 440.00 262

INDIA SOYOIL APR5 585.70 -3.30 585.00 588.00 11935

NYMEX CRUDE MAY5 47.81 +0.36 46.67 48.37 47163

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 = 3.6470 ringgit)

($1 = 6.2046 Chinese yuan)

($1 = 62.2300 Indian rupees)

(Additional reporting by Charlotte Greenfield in Jakarta;

Editing by Mark Potter)