February 13, 2018 / 5:31 AM / 5 months ago

VEGOILS-Palm poised to snap gaining streak on market correction

    * Palm hit one-month high late Monday
    * Market sees profit-taking ahead of long holiday - Trader
    * Slow demand also weighing on market - Trader

    By Emily Chow
    KUALA LUMPUR, Feb 13 (Reuters) - Malaysian palm oil futures
on Tuesday were in line to snap four days of gains, as the
market declined on correction after a recent rally ahead of the
Lunar New Year national holiday, said traders.
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was down 0.5 percent
at 2,531 ringgit ($643.69) a tonne at the midday break. 
    The contract hit a one-month peak of 2,555 ringgit in the
previous session after industry regulator - Malaysian Palm Oil
Board - released bullish export data.
    Malaysian exports in January unexpectedly surged past output
levels, rising 6 percent from the previous month to 1.5 million
tonnes, the data showed. This reduced stockpiles by nearly 7
percent month-on-month to 2.5 million tonnes.
    Trading volumes stood at 12,910 lots of 25 tonnes each at
the midday break.
    Malaysian markets will be closed on Thursday and Friday for
the Lunar New Year holiday, and will resume trading on Feb. 19. 
    "The market is seeing a correction after yesterday's rally,"
said a Kuala Lumpur-based futures trader, adding traders were
locking in profit ahead of the national holiday.
    Slow buying activity had pulled down the market despite
export data showing a rise in demand, another trader said.     
    "The export figures were a surprise as we've been seeing
slow activity. Demand doesn't seem to be good," he said. 
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade rose as much as 0.4
percent, while the May soybean oil on the Dalian Commodity
Exchange climbed up to 0.8 percent. 
    The Dalian May palm oil contract was up 0.2 percent.
    Palm oil prices are impacted by other rival edible oils, as
they compete for a share in the global vegetable oils market. 
    Palm, soy and crude oil prices as of 0457 GMT
 Contract           Month   Last  Change     Low   High   Volume
 MY PALM OIL       FEB8     2530  -20.00    2530   2550      107
 MY PALM OIL       MAR8     2535  -15.00    2534   2543      543
 MY PALM OIL       APR8     2531  -12.00    2526   2537     4341
 CHINA PALM OLEIN  MAY8     5168  +10.00    5162   5198   154744
 CHINA SOYOIL      MAY8     5648  +12.00    5622   5680   184986
 CBOT SOY OIL      MAR8    31.93   +0.08   31.75  31.97     7469
 INDIA PALM OIL    FEB8     0.00   +0.00    0.00      0        0
 INDIA SOYOIL      FEB8    738.1   +0.25     738  741.4     6810
 NYMEX CRUDE       MAR8    59.61   +0.32   59.30  59.73    23707
  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 = 3.9320 ringgit)
($1 = 64.2700 Indian rupees)
($1 = 6.3230 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
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