October 9, 2017 / 6:28 AM / 9 months ago

VEGOILS-Palm heads for fifth day of gains tracking U.S. soyoil

    * Market gains on expectations of rising exports - trader
    * Palm oil may rise into 2,765-2,791 ringgit range -
    * MPOB data due at 0430 GMT on Oct. 10

    By Emily Chow and Tavleen Tarrant
    KUALA LUMPUR, Oct 9 (Reuters) - Malaysian palm oil futures
traded higher on Monday, in line for their fifth session of
gains, tracking strength in related edible oils and ahead of an
official September data release later this week. 
    "Palm oil is trading higher in view of gains in competing
vegetable oils," said a futures trader from Kuala Lumpur,
referring to soyoil on China's Dalian Commodity Exchange and the
Chicago Board of Trade.
    Another trader said market was buoyed by expectations of
stronger exports, referring to Malaysian palm oil shipment data
from cargo surveyor companies Intertek Testing Services and
Societe Generale de Surveillance.
    The Malaysian Palm Oil Board is scheduled to release
official data for September on Oct. 10. 
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.5
percent at 2,743 ringgit ($648.46) a tonne at the midday break.
    Traded volumes stood at 21,677 lots of 25 tonnes each at
Monday noon.
    However, traders say gains could be short-lived and prices
may drop before the week ends. "I don't think market gains can
sustain as there is an increase in Indonesian and Malaysian
production," says a Kuala Lumpur-based trader. 
    Palm oil production typically sees gains in the third and
fourth quarter of the year in line with seasonal trend. 
    September output is seen rising up to 1.84 million tonnes,
the strongest in nearly two years, according to a Reuters poll,
while end-stocks likely rose 3.2 percent from a month earlier to
2 million tonnes, their highest since February 2016.
    Exports are forecast to gain 7.8 percent to 1.60 million
tonnes. MYPOME-PO 
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade climbed as much as
0.5 percent. 
    The January soybean oil contract on China's Dalian Commodity
Exchange gained up to 0.6 percent, while the January
palm olein contract rose as much as 1.1 percent.
    Palm oil prices are affected by the performance of related
edible oils including soy, as they compete for a share of the
global vegetable oils market.
    Palm oil may break resistance at 2,737 ringgit per tonne and
rise into a range at 2,765-2,791 ringgit, according to Reuters
market analyst for commodities and energy technicals Wang Tao. 

 Palm, soy and crude oil prices at 0540 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       OCT7     2744    +3.00    2744   2750     189
 MY PALM OIL       NOV7     2744   +11.00    2741   2750     675
 MY PALM OIL       DEC7     2743   +13.00    2733   2746    9074
 CHINA PALM OLEIN  JAN8     5568   +56.00    5558   5620  231818
 CHINA SOYOIL      JAN8     6104   +30.00    6102   6148  150000
 CBOT SOY OIL      DEC7    33.13    +0.00   33.01  33.21    3740
 INDIA PALM OIL    OCT7   539.00    +1.80  538.50  540.5     244
 INDIA SOYOIL      OCT7      658    +0.40   657.5  662.8    1100
 NYMEX CRUDE       NOV7    49.47    +0.18   49.24  49.52   23326
 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 = 4.2300 ringgit)
($1 = 65.2900 Indian rupees)
($1 = 6.6330 Chinese yuan)

 (Reporting by Emily Chow and Tavleen Tarrant; Editing by Sherry
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