VEGOILS-Palm oil hits 2-1/2 week high as monsoon season seen curbing output
* Palm prices touch 2,374 ringgit per tonne, highest since Nov. 9
* Wet season in Indonesia, Malaysia to hurt production
* Bali palm gathering offers price outlook
(Updates throughout)
By Michael Taylor
JAKARTA, Nov 27 (Reuters) - Malaysian palm oil futures rose on Friday for a
third successive session to the highest in 2-1/2 weeks, tracking gains in other
vegetable oils and supported by expectations of lower output.
Palm traders say the onset of the monsoon season in key Southeast Asian
producing countries could crimp supplies and help boost prices. Palm also found
support as soybean oil prices in China climbed slightly.
"Dalian has been inching up for the past few days," said one Kuala
Lumpur-based trader, adding that strong Chinese demand was also expected in the
coming weeks. "At the same time we are moving into the monsoon season and
production will drop sharply."
The February benchmark palm oil contract on the Bursa Malaysia
Derivatives Exchange ended 0.9 percent higher at 2,361 ringgit ($555) per tonne.
The contract fell to a near one-month low earlier this week at 2,260 ringgit
per tonne, but has since rebounded to its highest since Nov. 9 at 2,374 ringgit.
Prices have added 3.1 percent this week but are little changed for the month so
far.
The January soybean oil contract on the Dalian Commodity Exchange
was up 0.5 percent.
Traded volumes for benchmark palm stood at 27,065 lots of 25 tonnes each,
below the 35,000 average lots usually traded by the end of the session.
Many palm investors are attending the annual Indonesian Palm Oil Conference
and 2016 Price Outlook at the resort island of Bali this week, where analysts
offered hints on market and price direction on Friday.
Bulging stockpiles, weak prices, the impact of the El Nino dry weather
pattern and new biodiesel mandates are among the topics discussed by delegates.
Palm prices will average 2,450-2,550 ringgit a tonne next year, Fadhil
Hasan, executive director at the Indonesian Palm Oil Association, told the
conference.
"Factors determining prices in 2016 are the implementation of Indonesia's
biodiesel program, price of crude oil, El Niño and implementation of CPOPC
(Council of Palm Oil Producer Countries)."
Palm oil may revisit its Nov. 9 high of 2,384 ringgit, as it has risen above
resistance at 2,348 ringgit per tonne, said Wang Tao, a Reuters market analyst
for commodities and energy technicals.
The ringgit eased against the dollar but touched its strongest level
since Oct. 19 earlier this week.
A stronger ringgit normally curbs demand for palm, as it makes the edible
oil costlier for holders of foreign currencies.
In related markets, crude oil futures fell on Friday with losses this month
standing at around 9 percent, hurt by disappointing Chinese economic data and
worries over a supply glut.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC5 2160 +25.00 2105 2160 145
MY PALM OIL JAN6 2293 +21.00 2270 2300 2117
MY PALM OIL FEB6 2361 +20.00 2339 2374 18116
CHINA PALM OLEIN MAY6 4644 +118.00 4532 4646 939378
CHINA SOYOIL MAY6 5646 +30.00 5596 5646 724254
CBOT SOY OIL JAN6 29.21 +0.50 0.00 0.00 0
INDIA PALM OIL NOV5 381.00 +0.50 380.70 382.50 368
INDIA SOYOIL DEC5 617.40 -0.65 615.10 622.00 34175
NYMEX CRUDE JAN6 42.03 -1.01 42.01 43.30 139349
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 = 4.2550 ringgit)
($1 = 66.7100 Indian rupees)
($1 = 6.3945 Chinese yuan)
(Additional reporting by Emily Chow in Bali; Editing by Subhranshu Sahu)