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Vegoils: Palm oil gains; set to snap losing streak on overnight soyoil

Reuters  |  KUALA LUMPUR 

By Emily Chow

(Reuters) - Malaysian palm futures rose on Monday, and were in line to snap four sessions of losses, tracking overnight gains in U.S. soyoil.

The benchmark palm contract for September delivery on the Bursa was up 0.5 percent at 2,277 ringgit ($564.59) a tonne at noon.

Trading volumes stood at 9,127 lots of 25 tonnes each at the midday break.

"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 [GRA/]

"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. [PALM/POLL]

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

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

Meanwhile, the September palm 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 market analyst for commodities and

Palm, soy and at 0615 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUL8 0 +0.00 0 0 0

MY PALM OIL AUG8 2274 +10.00 2270 2290 424

MY PALM OIL SEP8 2277 +11.00 2272 2288 4466

PALM OLEIN SEP8 4796 -31.00 4788 4842 168076

SOYOIL SEP8 5612 -2.00 5602 5652 212920

CBOT DEC8 29.44 -0.02 29.24 29.56 2705

PALM OIL JUL8 632.00 +2.20 627.10 632.4 205

SOYOIL JUL8 757.7 +2.65 756.8 759 3940

NYMEX CRUDE AUG8 74.19 +0.39 73.74 74.28 40421

Palm in Malaysian ringgit per tonne

CBOT in U.S. cents per pound

and RBD palm olein in Chinese yuan per tonne

soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 4.0330 ringgit)

($1 = 68.6650 Indian rupees)

($1 = 6.6206 Chinese yuan)

(Reporting by Emily Chow; Editing by Sunil Nair)

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

First Published: Mon, July 09 2018. 12:05 IST