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VEGOILS-Palm hits one-month top on lower production outlook
July 5, 2017 / 6:10 AM / 2 months ago

VEGOILS-Palm hits one-month top on lower production outlook

    * Palm set for 3rd day of gains, hits intraday high of 2,516
rgt/T
    * Rise in China's Dalian palm olein also supportive-Trader
    * Palm oil may rise into 2,522-2,534 ringgit-per-tonne
range-Techs

    By Emily Chow
    KUALA LUMPUR, July 5 (Reuters) - Malaysian palm oil futures
were slightly higher at the midday break on Wednesday, after
earlier hitting a one-month peak on forecasts of lower
production in June.
    However, trading volumes were thin as the soyoil market on
the Chicago Board of Trade (CBOT) is still closed for the U.S.
Independence Day holiday, traders said.
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.2
percent at 2,512 ringgit ($585.00) a tonne at the midday break.
    It earlier climbed to an intraday high of 2,516 ringgit, its
highest since June 5. Traded volumes stood at 6,595 lots of 25
tonnes each.
    "Prices extended some gains in the absence of rival oilseed
soyoil and on concerns of lower June production," said a Kuala
Lumpur-based futures trader.
    "The continuous gain in China palm olein may also lift
market sentiment," he said, referring to refined, bleached and
deodorized palm olein on China's Dalian Commodity Exchange.     
   
    Palm oil prices are impacted by movements in related edible
oils, as they compete for a share in the global edible oils
market. 
    September soybean oil on the Dalian Commodity Exchange
 fell 0.2 percent, while the September palm olein
 contract was up 0.9 percent.
    Palm oil output in Muslim-majority Malaysia, the world's
second largest producer, is expected to decline or stay flat in
June, due to the Ramadan and the Eid-Al-Fitr holiday period.
    The holy month of Ramadan and Eid, which marks the end of
the fasting season, was celebrated by Muslims in June this year,
leading to a shortage of workers to harvest fruit.
    Palm oil may rise into a range of 2,522-2,534 ringgit per
tonne, as it has broken above a resistance at 2,503 ringgit,
according to Reuters market analyst for commodities and energy
technicals Wang Tao.
                   
  Palm, soy and crude oil prices at 0549 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       JUL7     2655   +5.00    2655   2655       25
 MY PALM OIL       AUG7     2553   +2.00    2548   2556      778
 MY PALM OIL       SEP7     2512   +4.00    2504   2516     4070
 CHINA PALM OLEIN  SEP7     5342  +46.00    5288   5348   275644
 CHINA SOYOIL      SEP7     5956   -8.00    5924   5974   201358
 CBOT SOY OIL      DEC7    33.58   +0.00       0      0        0
 INDIA PALM OIL    JUL7   485.80   +0.70  483.90  486.2      231
 INDIA SOYOIL      JUL7   647.05   +0.15  645.35  648.4     4830
 NYMEX CRUDE       AUG7    47.00   -0.07   46.74  47.32   222236
 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 = 4.2940 ringgit)
($1 = 64.7250 Indian rupees)
($1 = 6.7955 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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