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VEGOILS-Palm rebounds from one-week low on stronger demand, technical buying
October 11, 2017 / 5:36 AM / 2 months ago

VEGOILS-Palm rebounds from one-week low on stronger demand, technical buying

    * Market climbing on a technical rebound - trader
    * Stronger exports outlook bolsters market - trader

    By Emily Chow and Tavleen Tarrant
    KUALA LUMPUR, Oct 11 (Reuters) - Malaysian palm oil futures
rebounded in early trade on Wednesday from a one-week low hit in
the previous session, supported by a stronger export outlook and
on technical buying. 
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.22
percent at 2,700 ringgit ($640.72) a tonne at the midday break.
    Traded volumes stood at 16,773 lots of 25 tonnes each at the
midday break on Wednesday.
    "The market came off a lot yesterday, so its just a
technical rebound," said a futures trader from Kuala Lumpur.
    Another trader added that expectations of stronger export
demand contributed to palm's morning gains. 
    "Exports overall could remain strong in the near term ... 
India may gear up purchases to cover some of the shortfall," he
added, as stock levels at the world's largest vegetable oil
consumer are low. 
    Palm oil shipments from Malaysia during October 1-10 rose
18.1 percent versus the corresponding period last month, data
from cargo surveyor Intertek Testing Services showed. 
    Another cargo surveyor Societe Generale de Surveillance
showed a 16.5 percent gain, due to rising demand from Europe,
China and India. 
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade was up 0.2
percent, while the January soybean oil contract on China's
Dalian Commodity Exchange fell 0.5 percent.
    The January palm olein contract declined 0.1
percent.
    Palm's prices are impacted by movements of related oils as
they compete for a share in the global vegetable oils market.
    
 Palm, soy and crude oil prices at 0503 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       OCT7        0   +0.00       0      0        0
 MY PALM OIL       NOV7     2695   +1.00    2690   2702      331
 MY PALM OIL       DEC7     2700   +6.00    2687   2706     7507
 CHINA PALM OLEIN  JAN8     5546   -8.00    5502   5550   242704
 CHINA SOYOIL      JAN8     6058  -30.00    6022   6070   231278
 CBOT SOY OIL      DEC7    33.16   +0.00   33.06  33.22     1756
 INDIA PALM OIL    OCT7   538.60   +0.50  537.10  539.3       50
 INDIA SOYOIL      OCT7    656.9   +0.10   656.5  656.9      270
 NYMEX CRUDE       NOV7    51.06   +0.14   50.86  51.15    18847
 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 = 4.2140 ringgit)
($1 = 65.2700 Indian rupees)
($1 = 6.5813 Chinese yuan renminbi)

 (Reporting by Emily Chow and Tavleen Tarrant; Editing by Vyas
Mohan)
  
 
 

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