VEGOILS-Palm hits two-month high on stronger soyoil
* Expectations of lower than forecast July output support palm -traders
* Palm could rise towards 2,591 ringgit a tonne -technicals
(Updates with closing prices)
By Emily Chow
KUALA LUMPUR, July 25 (Reuters) - Malaysian palm oil futures surged nearly 3
percent to two-month highs on Tuesday evening, supported by expectations of
lower than forecast production in July and tracking strong gains in soyoil on
the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for October delivery on the Bursa
Malaysia Derivatives Exchange was up 2.9 percent at 2,626 ringgit ($613.55) a
tonne at the close. That was the highest since May 23 thanks to the best daily
gain in more than three months.
Traded volumes stood at 53,471 lots of 25 tonnes each in the evening.
"The palm market was up, riding the CBOT rally on reports of crop damage,"
one Kuala Lumpur-based futures trader said.
The October soybean oil contract on CBOT rose by 0.9 percent, in line
with soybean prices that hit two-week highs after the U.S. Department of
Agriculture said that recent dry weather had damaged more of the crop than
expected.
Palm oil prices track movements in related edible oils that compete for a
share in the global vegetable oils market.
The trader said the market had lowered its forecast for palm oil production
in July, supporting prices in early Tuesday trade.
Palm oil production in Malaysia, the second-largest producer behind
Indonesia, is seen rising in the second half of the year, but gains could be
limited by the lingering impact of the crop-damaging El Nino in 2015.
Production in 2017 is estimated to reach between 18.7 million tonnes and
19.5 million tonnes, up by about 10 percent from 2016 levels but below the
record high of 19.96 million tonnes in 2015.
Palm oil seems to have stabilised around support at 2,541 ringgit a tonne
and could rise towards resistance at 2,591 ringgit, said Wang Tao, a Reuters
market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 1208 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2650 +57.00 2603 2650 1612
MY PALM OIL SEP7 2635 +71.00 2578 2640 7290
MY PALM OIL OCT7 2625 +73.00 2565 2631 25817
CHINA PALM OLEIN SEP7 0 +0.00 0 0 0
CHINA SOYOIL SEP7 0 +0.00 0 0 0
CBOT SOY OIL DEC7 34.32 +0.23 34.2 34.62 14980
INDIA PALM OIL JUL7 484.80 +5.30 480.00 485.3 1415
INDIA SOYOIL AUG7 644.3 +5.50 641.05 646.5 32010
NYMEX CRUDE SEP7 47.24 +0.90 46.38 47.27 204153
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 = 4.2800 ringgit)
($1 = 64.3800 Indian rupees)
($1 = 6.7492 Chinese yuan)
(Reporting by Emily Chow; Editing by David Goodman)