December 15, 2017 / 5:36 AM / 6 months ago

VEGOILS-Palm oil bounces back from 16-month low on technical rebound

    * Palm in line for first session of gain in three
    * News of lower export tax on crude palm oil supports mkt -
    * Palm oil targets 2,491 ringgit/tonne - Technicals

    By Emily Chow
    KUALA LUMPUR, Dec 15 (Reuters) - Malaysian palm oil futures
rose nearly 1 percent on Friday, bouncing back from a 16-month
low hit in the previous session, on a technical rebound.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.9
percent at 2,475 ringgit ($606.02) at the midday break, heading
for its first session of gain in three.
    Palm oil hit its lowest since August 2016 on Thursday due to
high inventories and low demand, and has shed 4.9 percent so far
this month after declining 7.5 percent in November. It is down
0.16 percent this week after six consecutive weekly falls.

    Trading volumes stood at 25,528 lots of 25 tonnes each at
the midday break on Friday.
    "The market is seeing a technical rebound after a sharp
drop, it looks like yesterday it reached its bottom," said a
futures trader from Kuala Lumpur.
    "The market may start moving higher from now, as all
negative factors are priced in."
    Malaysian palm oil stocks at the end of November rose to
2.56 million tonnes, the highest since late 2015, while cargo
surveyor data showed exports in the first half of December fell
9.6 percent from a month earlier.
    The market is also up on news of lower export tax on crude
palm oil, said another trader. 
    Malaysia said on Friday it will lower its crude palm oil
export tax to 5.5 percent in January, from 6 percent in
    Palm oil may break a resistance at 2,462 ringgit per tonne
and rise towards the next resistance at 2,491 ringgit, according
to Reuters market analyst for commodities and energy technicals
Wang Tao.
    In other related oils, the January soybean oil contract
 on the Chicago Board of Trade fell 0.1 percent, while the
January soybean oil contract on the Dalian Commodity Exchange
 was down 0.7 percent.
    The Dalian January palm olein contract dropped 0.4
    Palm oil prices are affected by other edible oils as they
compete for a share in the global vegetable oils market.

    Palm, soy and crude oil prices at 0507 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2345   +5.00    2325    2376     147
 MY PALM OIL       JAN8     2435  +24.00    2399    2435     635
 MY PALM OIL       FEB8     2475  +23.00    2440    2477    9999
 CHINA PALM OLEIN  MAY8     5250  -12.00    5214    5254  185642
 CHINA SOYOIL      MAY8     5814  -28.00    5790    5828  173554
 CBOT SOY OIL      JAN8    33.15   -0.03   33.05   33.18    1834
 INDIA PALM OIL    DEC7   562.10   +1.10  561.30     565     103
 INDIA SOYOIL      DEC7        0   +0.00       0       0       0
 NYMEX CRUDE       JAN8    57.19   +0.15   57.06   57.20    7343
  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 = 4.0840 ringgit)
($1 = 64.1000 Indian rupees)
($1 = 6.6063 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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