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Vegoils: Palm oil edges higher, snaps losing streak on U.S. soyoil

Reuters  |  KUALA LUMPUR 

By Emily Chow

(Reuters) - Malaysian futures ended the trading day slightly higher on Monday, tracking gains in U.S. soyoil and snapping four previous sessions of losses.

The benchmark palm contract for September delivery on the Bursa was up 0.1 percent at 2,268 ringgit ($563.48) a tonne at the close of trade.

Trading volumes stood at 24,911 lots of 25 tonnes each in the evening.

"Palm is up, tracking U.S. soyoil overnight prices," said a in Kuala Lumpur, referring to soyoil prices on the which jumped 1.5 percent on Friday.

U.S. soybean and soyoil futures surged on Friday on a market recovery, after hitting lows prompted by concerns over an escalating trade war with

"In the medium term, however, the market is expecting production to rise from now until September on a seasonal basis," added the palm trader, explaining that this could further dampen benchmark prices.

Palm typically rises in the third quarter of the year in line with the seasonal trend. Malaysian output for June is forecast to slide 11.1 percent to 1.36 million tonnes, its weakest figure for June since 2007, due to a labour shortage, according to a poll.

data will be released by the on Tuesday after 0430 GMT.

In other related oils, the Chicago December contract was down 0.2 percent, while the September on China's rose 0.1 percent.

Meanwhile, the Dalian September declined 0.7 percent.

Palm track the performance of other edible oils as they compete for a share in the global vegetable oils market.

Palm oil looks neutral in a range of 2,270-2,290 ringgit per tonne, and an escape could suggest a direction, said Wang Tao, a

(Reporting by Emily Chow; Editing by and Mark Potter)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 18:35 IST