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VEGOILS-Palm climbs 1 pct on rival oil strength, improving export demand
July 20, 2017 / 5:59 AM / 5 months ago

VEGOILS-Palm climbs 1 pct on rival oil strength, improving export demand

    * Palm rebounds from 2-week low hit in previous session
    * Stronger exports data, China demand outlook support mkt-
traders
    * China seen importing 450,000 tonnes of palm oil a month in
Aug, Sept- CNGOIC

    By Emily Chow
    KUALA LUMPUR, July 20 (Reuters) - Malaysian palm oil futures
jumped 1 percent in early trade on Thursday, recovering from a
two-week low hit in the previous session, on the back of
strength in related edible oils.
    Cargo surveyor data showing rising export demand and
forecasts of stronger demand from China also supported the
market, said traders.
    China is expected to import 450,000 tonnes of palm oil per
month in August and September, compared with a forecast of
250,000 tonnes for July, according to a report by the China
National Grain and Oils Information Center (CNGOIC).
    Chinese traders booked seven palm oil cargoes of around
80,000 tonnes on Tuesday due to lower prices in overseas
markets, CNGOIC said.
    As prices in overseas markets further weaken and futures on
China's Dalian Commodity Exchange remain strong, local traders
are expected to book more cargoes and domestic palm oil stocks
will start growing in August, it added. 
    The benchmark palm oil contract for October delivery
 on the Bursa Malaysia Derivatives Exchange was up 1.03
percent at 2,551 ringgit ($594.92) at the midday break. 
    It had hit a two-week low of 2,494 ringgit in intraday
trading on Wednesday before closing 0.5 percent higher. 
    Traded volumes stood at 11,507 lots of 25 tonnes each at the
midday break on Thursday.
    "Dalian and soyoil edged higher," said a Kuala Lumpur-based
futures trader, referring to related edible oils on the Dalian
and soyoil on the Chicago Board of Trade. 
    "Exports and news on China's buying also supported the palm
market."
    Palm oil shipments from Malaysia, the world's second largest
producer after Indonesia, rose 10.5 percent during July 1-20
compared with a month earlier, according to data from cargo
surveyor Intertek Testing Services.
    In other related oils, the December soybean oil contract
 on the Chicago Board of Trade was up 0.03 percent, while
the September soybean oil on the Dalian Commodity Exchange
 rose 1.1 percent.
    The September palm olein contract gained 1.4
percent.
    
 Palm, soy and crude oil prices at 0527 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       AUG7     2597  +17.00    2590    2600     522
 MY PALM OIL       SEP7     2566  +25.00    2552    2566    1821
 MY PALM OIL       OCT7     2551  +26.00    2537    2552    5033
 CHINA PALM OLEIN  SEP7     5416  +74.00    5370    5436  284332
 CHINA SOYOIL      SEP7     6132  +68.00    6072    6164  246922
 CBOT SOY OIL      DEC7    33.89   +0.01   33.85      34    2325
 INDIA PALM OIL    JUL7   481.20   +1.90  480.40   482.8     542
 INDIA SOYOIL      JUL7    631.4   -1.20   631.2   631.4      90
 NYMEX CRUDE       AUG7    47.10   -0.02   47.05   47.18     549
 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 = 4.2880 ringgit)
($1 = 64.3675 Indian rupees)
($1 = 6.7635 Chinese yuan) 

 (Reporting by Emily Chow; Additional reporting by Dominique
Patton in BEIJING; Editing by Subhranshu Sahu)
  
 
 

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