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VEGOILS-Palm hits 2-mth high as weather concerns linger
August 27, 2013 / 5:23 AM / 4 years ago

VEGOILS-Palm hits 2-mth high as weather concerns linger

* Prices hit 2,468 ringgit, highest since June 20
    * Malaysia's August 1-25 palm oil exports up 7.5 pct -SGS
    * Palm oil still targets 2,491 ringgit -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, Aug 27 (Reuters) - Malaysian palm oil futures
climbed to the highest in more than two months on Tuesday as
concerns lingered over dry weather damaging soy crops  in the
U.S. Midwest.
    Forecasts for stressful weather in the U.S. farm belt had
boosted palm oil prices by as much as 3.5 percent on Monday, as
a smaller amount of soybeans for crushing into edible oil could
shift some demand to the palm-based variety. 
    Gains were relatively muted on Tuesday, with analysts
warning prices at new highs may trigger some profit-taking.    
    "We can see a large bullish gap up in previous day trading,
with prices breaking through at 2,398 ringgit as it proceeded to
test the resistance level at 2,500," said Singapore-based
Phillip Futures in a note on Tuesday. 
    "However, we expect prices to lose support as current bull
factors are short-term and we may expect a sell-off by investors
at the current good price level." 
    At the market close, the benchmark November contract
 on the Bursa Malaysia Derivatives Exchange had pulled
back from the intraday high to 2,452 ringgit ($736) per tonne,
up 0.7 percent. 
    Prices earlier hit 2,468 ringgit, a level unseen since June
20. Total traded volume stood at 43,982 lots of 25 tonnes each,
well above the average 35,000 lots.
    Technicals showed a bullish target at 2,491 ringgit per
tonne remains unchanged for palm oil, as it has cleared a
resistance at 2,407 ringgit, said Reuters market analyst Wang
    Malaysia's palm export demand remained resilient with cargo
surveyors reporting a 7.1-7.5 percent increase in Aug. 1-25
shipments from the same period a month ago, supported by
stronger demand from Europe, India and China.
    In other markets, Brent crude rose above $111 a barrel on
Tuesday as rising tension over a suspected chemical weapons
attack in Syria raised the prospect of Western military action
in the Middle East. 
    In vegetable oil markets, the U.S. soyoil contract for
December lost 0.2 percent in late Asian trade. The
most-active January soybean oil contract on the Dalian
Commodities Exchange climbed 1.3 percent.    
  Palm, soy and crude oil prices at 1002 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      SEP3    2474    -9.00    2457    2502     268
  MY PALM OIL      OCT3    2460   +11.00    2445    2479    5113
  MY PALM OIL      NOV3    2452   +18.00    2434    2468   20978
  CHINA PALM OLEIN JAN4    5826   +98.00    5778    5862  623748
  CHINA SOYOIL     JAN4    7410   +94.00    7360    7462  867302
  CBOT SOY OIL     DEC3   44.78    -0.10   44.49   45.17    9413
  NYMEX CRUDE      OCT3  106.86    +0.94  105.88  106.91   16538
  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
  Crude in U.S. dollars per barrel
 ($1=3.33 Malaysian ringgit)

 (Editing by Michael Perry and Tom Hogue)

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