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VEGOILS-Palm hits 1-wk top tracking gains in related edible oils
December 4, 2017 / 5:39 AM / 12 days ago

VEGOILS-Palm hits 1-wk top tracking gains in related edible oils

    * Palm in line for second straight session of gains
    * Worries over floods on east coast support mkt - trader
    * Palm may rise to 2,645 ringgit/tonne - Technicals

    By Emily Chow
    KUALA LUMPUR, Dec 4 (Reuters) - Malaysian palm oil futures
hit a one-week high on Monday, tracking gains in related edible
oils on the Chicago Board of Trade and China's Dalian Commodity
Exchange.
    Concerns that floods on the east coast of Peninsular
Malaysia could hit production also supported the market, said
traders. 
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.7
percent at 2,621 ringgit ($642.56) a tonne at the midday break,
heading for a second straight session of gains.
    Earlier in the session, the contract hit its strongest level
since Nov. 24 at 2,625 ringgit.    
    Traded volumes stood at 11,316 lots of 25 tonnes each at
noon.
    "The market is up on Dalian and soyoil strength," said a
futures trader from Kuala Lumpur. 
    "Although some are feeling jittery about the floods in
Kelantan, Terengganu and small parts of Pahang, all bearish news
is already factored in," he said, referring to the flood
situation in the east coast states of Peninsular Malaysia.
    Year-end monsoon rains which lead to floods could hit palm
oil production in the short term by disrupting the harvesting
process.
    Production in Malaysia, the world's second largest producer
after Indonesia, could see a monthly decline in November after
industry regulator data showed that output hit the 2 million
tonne mark in October, a gain of 12.9 percent from the previous
month. MYPOMP-CPOTT
    Palm oil is also impacted by movements in other edible oils
as they compete for a share of the global vegetable oils market.
    The January soybean oil contract on the Chicago Board
of Trade was up 0.7 percent, while the January soybean oil
contract on the Dalian Commodity Exchange was down 0.1
percent after rising as much as 0.6 percent.
    In other related edible oils, Dalian's January palm olein
contract rose 0.6 percent.
    Palm oil may break a resistance at 2,612 ringgit per tonne
and rise more to the next resistance at 2,645 ringgit, according
to Reuters market analyst for commodities and energy technicals
Wang Tao.
      
    Palm, soy and crude oil prices at 0509 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2505  +10.00    2505    2519      11
 MY PALM OIL       JAN8     2588  +22.00    2571    2589     497
 MY PALM OIL       FEB8     2621  +18.00    2608    2625    6476
 CHINA PALM OLEIN  MAY8     5488  +48.00    5436    5508  269016
 CHINA SOYOIL      MAY8     6046  +10.00    6010    6062  245844
 CBOT SOY OIL      JAN8    33.91   +0.00   33.71   33.93    7016
 INDIA PALM OIL    DEC7   586.60   +2.20  586.00     587      60
 INDIA SOYOIL      DEC7    732.8   +1.55   730.6     734    1160
 NYMEX CRUDE       JAN8    57.95   -0.41   57.83   58.34   24899
 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 = 4.0790 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.6133 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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