VEGOILS-Palm edges down as Dalian related oils erase some gains

By Emily Chow

* Market charts second day of losses after seven gains * Market down on correction - analyst * Palm oil may test support at 2,160 rgt/T - techs (Updates with closing prices) By Emily Chow KUALA LUMPUR, Aug 16 (Reuters) - Malaysian palm oil futures reversed earlier gains to fall at the close of trade on Friday, tracking related edible oils on China's Dalian Commodity Exchange which erased some gains. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was last down 0.4% at 2,192 ringgit ($524.90) per tonne in the evening, charting a second day of losses after seven previous session of wins. The market, however, is up 0.6% for the week for a second straight week of gains. Palm oil may test a support at 2,160 ringgit per tonne, a break below which could cause a fall to 2,113 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. "Palm opened higher today tracking initial bullish momentum in U.S. soybean oil on the Chicago Board of Trade and Dalian Commodity Exchange's related oils," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil brokerage. "However, the market could not hold gains and started to trade in negative territory as with similar losses seen in Chinese commodity futures," he said, adding that palm is also seeing a correction after an earlier streak of gains. Meanwhile, top palm producer Indonesia said on Friday it wants to develop 100% palm-based biodiesel, as part of efforts to increase domestic consumption and reduce palm stockpiles. Palm oil is used as feedstock to make biodiesel which is a fuel substitute. In other related edible oils, U.S. soyoil futures on the CBOT gained 8%, 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 1113 GMT Contract Month Last Change Low High Volume MY PALM OIL SEP9 2145 +0.00 2130 2165 906 MY PALM OIL OCT9 2167 -6.00 2160 2201 11150 MY PALM OIL NOV9 2192 -8.00 2184 2226 21942 CHINA PALM OLEIN SEP9 4648 -26.00 4618 4710 74654 CHINA SOYOIL SEP9 6050 +20.00 5992 6152 106194 CBOT SOY OIL OCT9 29.41 +0.22 29.19 29.66 584 INDIA PALM OIL AUG9 549.40 -5.00 548.20 556 1175 INDIA SOYOIL AUG9 759.5 +0.25 758 761.5 180 NYMEX CRUDE SEP9 55.42 +0.95 54.69 55.67 37869 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 = 4.1760 ringgit) ($1 = 71.0698 Indian rupees) ($1 = 7.0383 Chinese yuan) (Reporting by Emily Chow; editing by Uttaresh.V and Rashmi Aich; Editing by Elaine Hardcastle)