VEGOILS-Palm declines 2% as recession concerns weigh

By Emily Chow

* Market snaps seven previous days of gains * Palm also down on technical selling - trader (Updates with closing prices, quote) By Emily Chow KUALA LUMPUR, Aug 15 (Reuters) - Malaysian palm oil futures declined 2% at the close of trade on Thursday, weighed down by mounting concerns of a U.S. recession and technical selling after seven consecutive days of gains. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was last down 2% at 2,175 ringgit ($518.85) per tonne, though still holding near a four-month high. Palm oil prices have gained 5% since the start of the month, and rose to a four-and-a-half-month high of 2,223 ringgit in its previous trading session. "The market is down over the recession concerns," said a Kuala Lumpur-based trader. Another trader said palm had weakened due to technical selling after the past week's continuous gains. The U.S. Treasury yield curve inverted for the first time since 2007 on Wednesday, a sign of investor concern the world's biggest economy may be heading for recession. Palm was also earlier weighed down by weaker crude oil, which slipped further below $60 a barrel, pressured by recession concerns and a surprise boost in U.S. crude inventories. Palm oil prices are impacted by movements in crude oil as the vegetable oil is used as feedstock to make biodiesel, a fuel substitute. In other related edible oils, U.S. soyoil futures on the CBOT was down 0.6% on Thursday, while the September soyoil contract on the Dalian exchange rose 0.3%. The Dalian September palm oil contract fell 0.6%. Palm oil prices are also affected by movements in related oils that compete in the global vegetable oils market. Palm, soy and crude oil prices at 1103 GMT Contract Month Last Change Low High Volume MY PALM OIL AUG9 0 +0.00 0 0 0 MY PALM OIL SEP9 2145 -41.00 2142 2185 1246 MY PALM OIL OCT9 2175 -44.00 2173 2220 22905 CHINA PALM OLEIN SEP9 4646 -28.00 4642 4710 49782 CHINA SOYOIL SEP9 6006 +18.00 5992 6064 107184 CBOT SOY OIL OCT9 29.11 -0.18 29.11 29.38 715 INDIA PALM OIL AUG9 553.70 +5.50 547.10 556.5 1804 INDIA SOYOIL AUG9 759 +3.90 752.25 760 2570 NYMEX CRUDE SEP9 53.87 -1.36 53.77 55.33 126928 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 = 4.1920 ringgit) ($1 = 71.3020 Indian rupees) ($1 = 7.0419 Chinese yuan) (Reporting by Emily Chow; Editing by Rashmi Aich and David Evans)