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VEGOILS-Palm steady as traders await fresh cues
September 6, 2017 / 5:43 AM / 16 days ago

VEGOILS-Palm steady as traders await fresh cues

    * Production down in first 5 days of Sept - industry body
    * Market firm, waiting for fresh leads - trader
    * CBOT, Dalian soybean oil 0.6 and 0.3 pct higher

    By Liz Lee
    KUALA LUMPUR, Sept 6 (Reuters) - Malaysian palm oil futures traded largely
unchanged in the first half on Wednesday, after posting its best session in six
weeks in the previous session, as traders awaited fresh cues.
    The benchmark palm oil contract for November delivery on the Bursa
Malaysia Derivatives Exchange lost 0.04 percent to 2,766 ringgit ($651.74) a
tonne at the midday break, reversing the uptick achieved in the previous
session.
    Traded volumes stood at 16,665 lots of 25 tonnes.
    Palm snapped four straight sessions of losses and rose 2.25 percent on
Tuesday, registering its biggest gain since July 25. The Malaysian bourse was
closed from Thursday to Monday for public holidays.
    "There is a lack of new leads, but market is still firm on expectations that
harvesting activities slowed over the long weekend, bringing down production
numbers," said a futures trader based in Kuala Lumpur.
    Another trader said the market will likely react positively to data just
released from the Southern Peninsula Palm Oil Millers' Association (SPPOMA)
showing a drop in production by 33.45 percent in the first five days of
September.
    "September is crucial, everyone is watching the production figures. If (low
production) continues in the next couple of weeks, it will be a positive
surprise as it bucks the seasonality trend of palm," he said.
    Market participants have been expecting output to rise in the coming months.
Demand for palm is also expected to strengthen ahead of the festival season in
China and India.
    Soybean oil on the Chicago Board of Trade (CBOT) rose 0.6 percent.
The most active soybean oil contract on the Dalian Commodity Exchange
was up 0.3 percent.
    The January palm olein contract on Dalian was also up 0.8 percent.
    Palm prices are impacted by the movements of related edible oils as they
compete for a share in the global vegetable oils market.
    
 Palm, soy and crude oil prices at 0510 GMT
 Contract                Month      Last    Change      Low     High       Volume
 MY PALM OIL          SEP7          2735     -5.00     2733     2738           48
 MY PALM OIL          OCT7          2755     -1.00     2743     2755          259
 MY PALM OIL          NOV7          2766     -1.00     2754     2768         9248
 CHINA PALM OLEIN     JAN8          5542    +24.00     5520     5582       365670
 CHINA SOYOIL         JAN8          6376     +6.00     6360     6410       247464
 CBOT SOY OIL         DEC7         35.62     +0.00    35.38    35.69         3720
 INDIA PALM OIL       SEP7        529.70     +0.80   528.30    530.9          221
 INDIA SOYOIL         SEP7           663     -1.10    662.2    663.8         1080
 NYMEX CRUDE          OCT7         48.57     -0.09    48.52    48.66        19537
 
 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 = 4.24 ringgit)
($1 = 64.22 Indian rupees)
($1 = 6.53 Chinese yuan)

 (Reporting by Liz Lee; Editing by Vyas Mohan)
  

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