February 7, 2018 / 5:58 AM / 10 months ago

VEGOILS-Palm climbs to one-week top tracking gains in related oils

    * Palm hits 2,505 rgt/T in early trade, highest since Jan.
    * Gains may not be sustained on weak demand - Trader
    * Palm oil neutral in 2,448-2,520 rgt/T range - Techs

    By Emily Chow
    KUALA LUMPUR, Feb 7 (Reuters) - Malaysian palm oil futures
rose to a one-week high in early trade on Wednesday, supported
by gains in rival edible oils. 
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was up 1 percent at
2,495 ringgit ($638.92) a tonne at the midday break, its
strongest gain in over a week. 
    It earlier rose to 2,505 ringgit, its highest since Jan. 30.
    Trading volumes stood at 17,587 lots of 25 tonnes each.
    "The market is up after we saw strong overnight gains in the
soybean oil market," said a Kuala Lumpur-based trader.
    However, the gains may not be sustained due to weak demand
for the tropical oil, he added. 
    Malaysian palm oil shipments are forecast to decline 8
percent in January to 1.31 million tonnes, according to a
Reuters poll, while end-stocks are seen rising 0.6 percent to
2.75 million tonnes.
    Output, however, is expected to fall 14.9 percent to 1.56
million tonnes. 
    Palm oil prices are impacted by other rival edible oils, as
they compete for a share in the global vegetable oils market. 
    The March soybean oil contract on the Chicago Board
of Trade surged 2 percent on Tuesday, buoyed by chart-based
buying and optimism U.S. lawmakers may soon renew a
$1-per-gallon biodiesel tax credit. It was last down 0.03
percent on Wednesday.
    The gains were also in line with soybean futures,
underpinned by dry weather curbing Argentina's crop yields and
excessive rains slowing Brazil's harvest.
    In other related edible oils, the May soybean oil on the
Dalian Commodity Exchange edged up 0.5 percent while the
Dalian May palm oil contract rose 0.3 percent.     
    Palm oil remains neutral in a range of 2,448-2,520 ringgit
per tonne, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    Palm, soy and crude oil prices as of 0547 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       FEB8     2487   +6.00    2487   2499       28
 MY PALM OIL       MAR8     2494  +19.00    2487   2505      770
 MY PALM OIL       APR8     2495  +25.00    2487   2505    10642
 CHINA PALM OLEIN  MAY8     5118  +14.00    5086   5142   194382
 CHINA SOYOIL      MAY8     5634  +32.00    5590   5670   246980
 CBOT SOY OIL      MAR8    33.15   -0.01   33.09  33.27     5637
 INDIA PALM OIL    FEB8   573.70   +2.80  572.50  579.9      647
 INDIA SOYOIL      FEB8    740.9   +3.20     740  742.5     4900
 NYMEX CRUDE       MAR8    63.88   +0.49   63.81  64.18    41056
  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 = 3.9050 ringgit)
($1 = 64.1500 Indian rupees)
($1 = 6.2525 Chinese yuan)

 (Reporting by Emily Chow; Editing by Sunil Nair)
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