March 12, 2018 / 5:53 AM / 5 months ago

VEGOILS-Palm rises on technical rebound from 1-1/2 year low, traders see weakness post-noon

    * Bearish govt data may set tone for second half - Trader
    * Palm oil may hover above 2,367 ringgit/tonne - Technicals

    By Emily Chow
    KUALA LUMPUR, March 12 (Reuters) - Malaysian palm oil
futures rose on Monday morning, but are expected to decline in
the second half of trade as official data released during the
market's midday break estimated March production to be higher.
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was up 0.5 percent at
2,387 ringgit ($610.95) a tonne at the midday break, rising from
its lowest in over a year-and-a-half reached in its previous
trading session.     
    Trading volumes stood at 14,909 lots of 25 tonnes each at
the midday break.
    "The market earlier recovered as it was oversold, but the
Malaysian Palm Oil Board data is not positive," said a Kuala
Lumpur-based futures trader, referring to industry regulator
data. 
    "With March production estimates higher, we're expecting the
market to be lower in the second session."
    Palm oil inventories in Malaysia edged down nearly 3 percent
to a four month low at end-February to 2.48 million tonnes, but
was still higher than a Reuters forecast of 2.37 million tonnes.
    
    Production fell 15.4 percent to 1.34 million tonnes, a
fourth consecutive month of decline to its lowest in a year, but
its highest February levels since at least 2000.
    February exports declined 13.3 percent to 1.31 million
tonnes, its sharpest monthly decline in a year, and could
further drop in March after India hiked its import taxes on palm
oil to the highest in over a decade.
    Indian importers last week sought to cancel up to 100,000
tonnes of crude palm oil cargoes as costs have risen on import
duties.
    Malaysian palm oil shipments fell in March 1-10, down 12.1
percent from the corresponding period last month, according to
inspection company AmSpec Agri Malaysia on Monday.
    In other related oils, the Chicago Board of Trade's May
soybean oil contract was slightly down 0.03 percent,
while the May soybean oil on China's Dalian Commodity Exchange
 fell 0.25 percent. The Dalian May palm oil contract
 rose 0.1 percent.
    Palm oil prices are impacted by movements in rival edible
oils as they compete for a share in the global vegetable oils
market.
    Palm oil has found a support at 2,367 ringgit per tonne, it
may hover above this level or bounce into a range of 2,403-2,420
ringgit, said Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    
    Palm, soy and crude oil prices as of 0525 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAR8        0   +0.00       0       0       0
 MY PALM OIL       APR8     2395  +10.00    2392    2403     336
 MY PALM OIL       MAY8     2387  +11.00    2376    2396    6478
 CHINA PALM OLEIN  MAY8     5108   +4.00    5070    5118  177074
 CHINA SOYOIL      MAY8     5692  -14.00    5654    5696  189624
 CBOT SOY OIL      MAY8    31.58   +0.00   31.47   31.66    4399
 INDIA PALM OIL    MAR8   637.40   -3.10  636.50   640.1     226
 INDIA SOYOIL      MAR8   778.75   -5.05   778.1     780    1480
 NYMEX CRUDE       APR8    62.06   +0.02   62.02   62.33   30337
  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 = 3.9070 ringgit)
($1 = 64.9800 Indian rupees)
($1 = 6.3303 Chinese yuan)

 (Reporting by Emily Chow; Editing by Vyas Mohan)
  
 
 
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