January 3, 2018 / 5:47 AM / a year ago

VEGOILS-Palm hits one-month high on firmer related oils, better demand outlook

    * Palm rises to 2,573 rgt/T during early trade
    * Market prices may see rally in January - Trader

    By Emily Chow
    KUALA LUMPUR, Jan 3 (Reuters) - Malaysian palm oil futures
rose to their highest in one month in early trade on Wednesday,
supported by related edible oils and on expectations of stronger
demand in the coming weeks.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was up 1.1 percent at
2,560 ringgit ($636.18) a tonne at the midday break. It earlier
hit 2,573 ringgit, its strongest level since Dec. 5. 
    Trading volumes stood at 30,298 lots of 25 tonnes each.
    "The Chinese New Year celebration is coming, demand should
pick up from China," said a trader from Kuala Lumpur. 
    "We may experience a rally this month on the back of better
demand and firmer external pricing," he added, referring to
soyoil on both the Chicago Board of Trade and China's Dalian
Commodity Exchange. 
    Palm oil prices track the performance of other 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 saw overnight gains of 0.9 percent, and was last up
slightly by 0.2 percent on Wednesday. 
    In other related oils, May soybean oil on the Dalian
Commodity Exchange was up 0.3 percent, while the Dalian
January palm oil contract gained 0.6 percent. 
    Malaysian palm oil shipments, which had gained 6-9 percent
on-month in December according to cargo surveyor data, are
expected to further rise in January on improved demand from
China.
    The world's second largest palm oil importer after India is
expected to stock up ahead of the Lunar New Year celebrations,
which sees increasing palm oil consumption for cooking purposes.
    Global demand for Malaysian palm declined 11.9 percent to
1.35 million tonnes in November, as consumption fell during the
year-end winter months which solidifies the tropical oil.
MYPOME-PO
    
    Palm, soy and crude oil prices as of 0521 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8     2510  +38.00    2476    2518     340
 MY PALM OIL       FEB8     2539  +30.00    2516    2551    3909
 MY PALM OIL       MAR8     2560  +28.00    2538    2573   13836
 CHINA PALM OLEIN  MAY8     5330  +34.00    5296    5338  179262
 CHINA SOYOIL      MAY8     5784  +18.00    5760    5792  177894
 CBOT SOY OIL      MAR8     33.6   +0.07   33.52   33.61    2106
 INDIA PALM OIL    JAN8   560.70   +2.00  560.50   562.9     120
 INDIA SOYOIL      JAN8   729.85   +2.30   729.5   730.8    2430
 NYMEX CRUDE       FEB8    60.38   +0.01   60.34   60.47   14542
  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 = 4.0240 ringgit)
($1 = 63.5100 Indian rupees)
($1 = 6.5036 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 
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