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VEGOILS-Palm edges up on stronger soyoil, weather outlook
November 8, 2017 / 5:20 AM / 14 days ago

VEGOILS-Palm edges up on stronger soyoil, weather outlook

    * Palm in line for second day of gains
    * Daily rains could affect production - trader
    * Palm may end drop at 2,756 rgt/T - technicals

    By Emily Chow
    KUALA LUMPUR, Nov 8 (Reuters) - Malaysian palm oil futures
edged up in early trade on Wednesday, on track for a second day
of gains on the back of strength in soyoil on the Chicago Board
of Trade (CBOT).
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.3
percent at 2,794 ringgit ($660.99) a tonne at the midday break. 
    Traded volumes stood at 15,553 lots of 25 tonnes each at
noon.
    "Palm is up as soy is also up. The spread between soybean
oil and palm oil has widened a bit," said a futures trader from
Kuala Lumpur. A widening spread between the two edible oils
typically prompts buyers to switch to the cheaper palm oil. 
    The December soybean oil contract on the Chicago
Board of Trade rose 0.8 percent on Tuesday, and was last up 0.1
percent on Wednesday. Its spread with palm oil was at $111
around 0455 GMT, up from $96 last Friday.
    Palm oil is affected by movements in related oils, as they
compete for a share of the global vegetable oils market. 
    The market was also up on sentiment that the year-end
monsoon rains could lower production, added the trader, as heavy
rains can disrupt the harvesting process. 
    Production in Malaysia, the second largest palm producer
after Indonesia, is forecast to rise in October by 9.4 percent
to 1.95 million tonnes, according to a Reuters survey.
    Official data from industry regulator the Malaysian Palm Oil
Board is scheduled for release on Friday. 
    Palm oil may end its current drop above a support at 2,756
ringgit per tonne, and then resume its uptrend, according to
Wang Tao, a Reuters market analyst for commodities and energy
technicals.
    In other related edible oils, the January soybean oil
contract on the Dalian Commodity Exchange was up 0.3
percent, while the January palm olein contract on Dalian
fell 0.2 percent.
   
    Palm, soy and crude oil prices at 0458 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       NOV7        0   +0.00       0      0        0
 MY PALM OIL       DEC7     2775   +8.00    2770   2783      223
 MY PALM OIL       JAN8     2794   +9.00    2788   2802     8156
 CHINA PALM OLEIN  JAN8     5638  -10.00    5608   5654   153856
 CHINA SOYOIL      JAN8     6144  +18.00    6112   6158   142266
 CBOT SOY OIL      DEC7    35.06   +0.04   34.93  35.06     3468
 INDIA PALM OIL    NOV7   562.70   +4.60  557.20  565.4      438
 INDIA SOYOIL      NOV7    702.5   +5.25   697.5  702.9      940
 NYMEX CRUDE       DEC7    56.99   -0.21   56.93  57.14    19901
 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 = 4.2270 ringgit)
($1 = 65.0950 Indian rupees)
($1 = 6.6376 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Richard Pullin)
  
 
 

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