VEGOILS-Palm recovers early losses to hit two-month high on stronger soy
* Palm hits 2,637 rgt/T, highest since May 23
* Market sees technical buying on CBOT soyoil gains - trader
(Updates with closing prices, quote)
By Emily Chow
KUALA LUMPUR, July 26 (Reuters) - Malaysian palm oil futures
recovered from early session losses to hit a two-month high on
Wednesday evening as it tracked gains in rival oilseed soy on
the Chicago Board of Trade (CBOT).
Palm was down nearly 1 percent at the midday break, hurt by
expectations of higher production in July.
But the benchmark palm oil contract for October delivery
on the Bursa Malaysia Derivatives Exchange recovered
to close up 0.1 percent at 2,629 ringgit ($613.89), and touched
an interday peak of 2,637 ringgit, its highest since May 23.
Traded volumes stood at 50,319 lots of 25 tonnes each at the
close of trade.
"Gains in CBOT soyoil could have lead to covering and
technical buying," said a Kuala Lumpur based futures trader.
Palm tracks the movements in related edible oils as they
compete for a share in the global vegetable oils market. The
October soybean oil contract on the CBOT rose 0.6 percent
on Wednesday, in line for its first gain in four sessions.
Rising soyoil prices would widen its spread with palm oil,
making the tropical oil more price competitive.
Demand for palm oil is seen rising on a widening price
differential with soyoil, prompting buyers to switch to palm and
as key purchasing market China replenishes its palm oil port
stocks.
Chinese traders yesterday bought three more palm oil cargoes
for shipment in October or November, around 35,000 tonnes in
total, according to a report by China National Grain and Oils
Information Center (CNGOIC).
The report added that traders had booked about 25 cargoes of
palm oil for the fourth quarter of the year.
In other related edible oils, the September soybean oil
contract on the Dalian Commodity Exchange was down 0.8
percent, while the September palm olein contract rose
0.4 percent.
Palm, soy and crude oil prices at 1036 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 2654 +6.00 2623 2655 583
MY PALM OIL SEP7 2641 +4.00 2610 2647 5953
MY PALM OIL OCT7 2633 +3.00 2599 2637 24959
CHINA PALM OLEIN JAN8 5348 +22.00 5340 5410 555790
CHINA SOYOIL SEP7 6084 -46.00 6070 6198 323094
CBOT SOY OIL DEC7 34.19 +0.21 33.84 34.2 10132
INDIA PALM OIL JUL7 484.30 -0.80 482.70 484.7 1182
INDIA SOYOIL AUG7 643.8 +1.40 640.55 644.4 13150
NYMEX CRUDE SEP7 48.18 +0.29 48.16 48.59 141047
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 = 4.2825 ringgit)
($1 = 64.3500 Indian rupees)
($1 = 6.7510 Chinese yuan renminbi)
(Reporting by Emily Chow; Additional reporting by Dominique
Patton in BEIJING; Editing by Vyas Mohan and Mark Potter)
