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VEGOILS-Palm hits 6-week peak tracking soyoil, lower output forecast
July 10, 2017 / 6:22 AM / 3 months ago

VEGOILS-Palm hits 6-week peak tracking soyoil, lower output forecast

    * Palm rises to high of 2,585 rgt/T in early trade
    * Market gains to "fizzle out" in coming days -Trader
    * Palm exports from July 1-10 down nearly 2 pct -ITS

    By Emily Chow
    KUALA LUMPUR, July 10 (Reuters) - Malaysian palm oil futures
hit their highest in a month and a half in early trade on
Monday, aided by gains in rival oilseed soy on the Chicago Board
of Trade (CBOT) and China's Dalian Commodity Exchange. 
    The market was also up on forecasts of falling production
ahead of the release of industry regulator data, which came
after the midday break on Monday.
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.8
percent at 2,575 ringgit ($599.26) a tonne at the midday break.
It earlier hit a high of 2,585 ringgit a tonne, its strongest
level since May 26. 
    Traded volumes stood at 13,327 lots of 25 tonnes each at the
midday break.
    "The market is up on external factors, the immediate
reaction is to soyoil which has surged higher," said a Kuala
Lumpur-based trader, adding that it was also supported by an
expected decline in output data. 
    June production in Malaysia, the world's No.2 palm producer,
fell 8.5 percent to 1.51 million tonnes, leading to a decline in
end-stocks as well, data from the Malaysian Palm Oil Board
showed on Monday.
    Inventories dipped 1.9 percent to 1.56 million tonnes, while
exports for the full month of June dropped 8.4 percent to 1.38
million tonnes.
    "The market could move up more in the afternoon because of
the report, but gains could fizzle out in the next few days,"
said the trader, as production is seen rising on seasonal trend
in the coming months and demand weakens.
    Shipments of palm oil products from Malaysia fell 1.9
percent during July 1-10, down from the corresponding period in
June, showed data from cargo surveyor Intertek Testing Services
on Monday.
    In other related oils, soybean oil on the Chicago
Board of Trade rose 0.6 percent, while September soybean oil on
the Dalian Commodity Exchange surged 1.8 percent.
    The September palm olein contract was up 1.6
percent.
    Palm oil prices are impacted by movements in related edible
oils, as they compete for a share in the global edible oils
market. 
                        
  Palm, soy and crude oil prices at 0600 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       JUL7     2683   +15.00    2683   2701     297
 MY PALM OIL       AUG7     2628   +23.00    2625   2634    1160
 MY PALM OIL       SEP7     2575   +21.00    2574   2585    6251
 CHINA PALM OLEIN  SEP7     5496   +86.00    5402   5526  333456
 CHINA SOYOIL      SEP7     6098  +112.00    5990   6126  410066
 CBOT SOY OIL      DEC7    33.53    +0.60   33.45  33.76   10977
 INDIA PALM OIL    JUL7   491.90    +5.40  487.90  493.9     970
 INDIA SOYOIL      JUL7    645.2    +3.65     640  646.5    5580
 NYMEX CRUDE       AUG7    44.46    +0.23   44.33  44.72   34226
 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 = 4.2970 ringgit)
($1 = 64.5000 Indian rupees)
($1 = 6.8013 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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