January 22, 2018 / 5:37 AM / 3 months ago

VEGOILS-Palm poised to snap losing streak on bullish price outlook

    * Gains in related edible oils also supportive of market -
Trader
    * Palm may seek support at 2,426 ringgit/tonne - Technicals

    By Emily Chow
    KUALA LUMPUR, Jan 22 (Reuters) - Malaysian palm oil futures
gained on Monday, on track to snap a four-session decline,
rising on the back of bullish price outlook at an industry
conference held in Karachi earlier this week. 
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was up 0.9 percent at
2,467 ringgit ($626.30) a tonne at the midday break, its
sharpest intraday percentage gain in two weeks. 
    Trading volumes stood at 12,530 lots of 25 tonnes each.
    "Market support is coming in after the conference was held,
as industry analysts are expecting prices to go up before coming
down again," said a Kuala Lumpur-based trader, referring to the
Pakistan Edible Oil Conference in Karachi on Saturday.
    Malaysian palm oil prices could rise to 2,700 ringgit a
tonne in the first quarter of the year as production is expected
to decline on a seasonal basis, said two leading industry
analysts at the conference.
    Seasonal trend will stoke a rise in production levels and is
expected to pull down prices after the first quarter. 
    Another trader added gains in other related edible oils also
gave some support to palm. The oilseed tracks 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 rose as much as 0.2 percent, while the May soybean oil
on the Dalian Commodity Exchange gained up to 0.7
percent. 
    The Dalian May palm oil contract gained up to 0.2
percent. 
    Palm oil may seek a support at 2,426 ringgit per tonne, and
then either hover above this level or bounce towards a range of
2,462-2,491 ringgit, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    
    Palm, soy and crude oil prices as of 0504 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2458  +23.00    2447    2466     123
 MY PALM OIL       MAR8     2466  +22.00    2448    2471    1210
 MY PALM OIL       APR8     2467  +22.00    2445    2474    6492
 CHINA PALM OLEIN  MAY8     5186  +12.00    5148    5194  203134
 CHINA SOYOIL      MAY8     5736  +40.00    5674    5750  232912
 CBOT SOY OIL      MAR8    32.34   +0.06    32.2   32.36    4482
 INDIA PALM OIL    JAN8   554.30   +1.80  554.30   555.8      91
 INDIA SOYOIL      FEB8    737.8   +3.55   735.8   738.6    4890
 NYMEX CRUDE       FEB8    63.57   +0.20   63.37   63.63     649
  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 = 3.9390 ringgit)
($1 = 63.9450 Indian rupees)
($1 = 6.4055 Chinese yuan)
    

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