May 30, 2013 / 5:32 AM / 4 years ago

REFILE-VEGOILS-Weak soy markets drag palm oil from 2-month high

(Adds surname in editing line)
    * Palm oil falls on weak soy markets, profit-taking - trader
    * Palm to end correction above 2,362 ringgit - technicals
    * Cargo surveyor data for May exports due on Friday

    By Anuradha Raghu
    KUALA LUMPUR, May 30 (Reuters) - Malaysian palm oil futures
edged down on Thursday, slipping from a two-month high hit the
day before as weaker overseas markets and slower demand for
commodities weighed on the tropical oil, and as investors booked
profits.
    Soy markets in the United States, tracked by palm, extended
losses from the previous day following news that China, the
world's largest buyer of soybeans, had cancelled a 147,000 tonne
order for U.S. soy. 
    The benchmark August contract on the Bursa Malaysia
Derivatives Exchange ended 1.1 percent lower at 2,372 per tonne.
Prices traded in a tight 2,371-2,396 ringgit range, while total
traded volumes stood at 22,280 lots of 25 tonnes each, just
below an average 25,000 lots.
    "The market has been going up for so many days -- today it's
the first day down, following weaker overseas markets," said a
trader with a foreign commodities brokerage. 
    "The market is also down due to a technical correction and
profit taking," he added.
    Palm prices touched 2,420 ringgit on Wednesday, their
highest since March 28, as investors anticipated tight supplies
and a demand pick-up ahead of a Muslim festival, which would
help trim stocks in No.2 producer Malaysia.
    Technicals showed palm oil is expected to end the current
correction above a support at 2,362 ringgit per tonne and then
rise towards Wednesday's 2,420 ringgit high, Reuters market
analyst Wang Tao said. 
    Investors hope the Ramadan fasting month in July, when
communal feasting usually boosts consumption, will nudge up
demand of the edible oil that is widely used in food items
ranging from chocolate to cookies.
    Market players will study export data for May, which will be
released by cargo surveyors on Friday, to gauge demand. Exports
of palm oil products have been sluggish this month due partly to
weak demand from China.  
    "Exports could be down between 2-3 percent for May," the
Kuala Lumpur-based trader said. "Toward the Ramadan month,
normally India, Pakistan and the Middle East buys more. But this
time they are not."
    In other markets, oil prices eased towards $102 a barrel on
Thursday and were on track for a third straight month of losses
amid a tepid global demand outlook and abundant supplies in the
United States. 
    In vegetable oil markets, U.S. soyoil for July delivery
 slipped 0.3 percent in late Asian trade. The most-active
September soybean oil contract on the Dalian Commodities
Exchange ended down 1 percent.
  
  Palm, soy and crude oil prices at 1005 GMT
                                                                         
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUN3    2335   -24.00    2330    2350     144
  MY PALM OIL      JUL3    2369   -33.00    2368    2395    3049
  MY PALM OIL      AUG3    2372   -27.00    2371    2396   14034
  CHINA PALM OLEIN SEP3    6144   -60.00    6114    6192  494066
  CHINA SOYOIL     SEP3    7484   -76.00    7450    7498  743690
  CBOT SOY OIL     JUL3   48.51    -0.12   48.49   48.78    6343
  NYMEX CRUDE      JUL3   92.57    -0.56   92.34   93.29   23937
                                                                         
  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
  Crude in U.S. dollars per barrel
 
($1=3.069 ringgit)

 (Editing by Richard Pullin and Niluksi Koswanage)

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