March 30, 2018 / 5:45 AM / 3 months ago

VEGOILS-Palm rises, tracking U.S. soyoil; snaps 3-day losing run

    * U.S. soyoil's 1 pct overnight gain lifts palm oil
    * Malaysian palm oil exports seen higher in March over Feb
    * Palm oil down 5 pct so far in March as ringgit strengthens

    By Rajendra Jadhav
    MUMBAI, March 30 (Reuters) - Malaysian palm oil futures rose on Friday,
snapping a three-day losing streak, as the edible oil drew strength from
overnight gains in rival soyoil on the U.S. Chicago Board of Trade and on hopes
that March exports may have risen from February levels.
    The benchmark palm oil contract for June delivery on the Bursa
Malaysia Derivatives Exchange was up 1.08 percent at 2,430 ringgit ($629.53) a
tonne at the midday break. Trading volumes stood at 9,401 lots of 25 tonnes each
at the midday break.
    Palm prices have declined 5 percent so far for this month and 2.9 percent so
far in the first quarter of the year.
    Prices could decline further this year as production is expected to rise
after a dry weather El Nino phenomenon and as young trees come to maturity and
increase harvested areas.
    U.S. corn futures jumped nearly 4 percent on Thursday and soybeans surged
more than 2 percent after the U.S. Department of Agriculture stunned traders by
projecting a year-on-year decline in soybean plantings and a
larger-than-expected drop in corn acres.
    "Palm was following overnight gains in soyoil. The USDA report gave boost to
entire soybean complex," said a futures trader based in Kuala Lumpur.
    Palm oil is also supported by expectations that March exports may have risen
compared with February on account of more working days and lower prices, said a
Kuala Lumpur-based dealer.
    Exports of Malaysian palm oil products during March 1-25 rose 9.5 percent to
1,165,833 tonnes from 1,064,823 tonnes shipped during Feb. 1-25, inspection
company AmSpec Agri Malaysia said on Monday.
    The ringgit, palm's currency of trade, was up 0.16 percent at 3.8600
per dollar around Friday noon, after rising to its highest in nearly two years
earlier in the week.
    Appreciation in the ringgit usually weighs on palm oil prices by making it
more expensive for holders of foreign currencies.
    In related oils, the Chicago Board of Trade's May soybean oil contract
 jumped 1 percent on Thursday. The May soybean oil on China's Dalian
Commodity Exchange rose 1.1 percent, while the Dalian May palm oil
contract was up 0.7 percent.
    Palm oil prices are impacted by movements in rival edible oils as they
compete in the global vegetable oils market.
    Palm oil may drop to 2,150 ringgit per tonne in three months, according to
Reuters market analyst for commodities and energy technicals Wang Tao.

    
  Palm, soy and crude oil prices at 0506 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR8    2400   +22.00    2399    2405     134
  MY PALM OIL      MAY8    2435   +25.00    2426    2436     691
  MY PALM OIL      JUN8    2430   +26.00    2418    2432    5725
  CHINA PALM OLEIN SEP8    5072   +52.00    4974    5074  275644
  CHINA SOYOIL     SEP8    5828   +80.00    5692    5830  339028
  CBOT SOY OIL     MAY8   31.87    +1.40   31.42   32.15   67454
  INDIA PALM OIL   APR8  651.80    +1.40  647.70  653.70     453
  INDIA SOYOIL     APR8  779.20    +3.10  773.60  781.85   14050
  NYMEX CRUDE      MAY8   64.94    +0.53   64.16   65.26  535282
                                                                                  
  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 = 3.8600 ringgit)
($1 = 65.1100 Indian rupees)
($1 = 6.2687 Chinese yuan)

 (Reporting by Rajendra Jadhav; Editing by Amrutha Gayathri)
  
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