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VEGOILS-Palm oil rebounds on hopes for euro zone
June 5, 2012 / 6:12 AM / 5 years ago

VEGOILS-Palm oil rebounds on hopes for euro zone

 * Palm oil recovers from 2012 low marked on Monday
 * Local fundamentals healthy, but external factors weigh

 (Updates prices)	
 By Chew Yee Kiat	
 SINGAPORE, June 5 (Reuters) - Malaysian palm oil futures
rebounded on Tuesday, tracking a recovery in overseas markets,
as investors looked to policymakers for new action to tackle the
euro zone's debt crisis.	
 Palm oil closed at its lowest level in 2012 the previous
day, reflecting the bearish sentiment seen in a global sell-down
of most commodities including, crude oil and soybean oil.	
 But investors took a more optimistic stance on Tuesday ahead
of a conference call of the Group of Seven's finance chiefs that
could produce some concrete measures to solve the crisis.
 "The market is a bit stronger today, basically on short
covering and retracement after the previous day's sharp fall,"
said a trader with a foreign commodities brokerage in Malaysia. 	
 "The palm oil market is adjusting to external factors. It
will still be volatile until the Greek election."	
 Benchmark August palm oil futures on the Bursa
Malaysia Derivatives Exchange gained 0.4 percent to close at
2,966 ringgit ($927) per tonne. Prices touched a low of 2,925
ringgit on Monday, their lowest since Nov 2, 2011.	
 Traded volumes stood at 33,420 lots of 25 tonnes each,
higher than the usual 25,000 lots.	
 Demand for the edible oil remained firm in May, with cargo
surveyor Intertek Testing Services reporting a 2.4 percent
increase in Malaysian palm oil product exports. 	
 Another cargo surveyor, Societe Generale de Surveillance,
reported an almost flat export number for the same period.
 The bulk of the orders came from Pakistan and the Middle
East, where Muslims are getting ready to observe a month of
fasting starting in mid-July, with traders expecting exports to
remain healthy for June.	
 But traders said market volatility could continue, despite
solid fundamentals as most investors are now taking cues from
global uncertainty and price movements in external markets.     	
 Brent crude prices fell below $99 a barrel on Tuesday,
reversing gains earlier in the session, as a darkening outlook
on the euro zone debt crisis sparked concerns over oil demand
 In other vegetable oil markets, U.S. soyoil for July 
delivery inched up 0.2 percent in late Asian trade while the
most active Jan 2013 soyoil contract on the Dalian
commodity exchange closed 0.5 percent higher.       	
  Palm, soy and crude oil prices at 1005 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUN2    2960   +15.00    2960    2990     285
  MY PALM OIL      JUL2    2960    +8.00    2953    3004    1964
  MY PALM OIL      AUG2    2966   +13.00    2956    3008   19935
  CHINA PALM OLEIN JAN3    7704   +26.00    7684    7766  168828
  CHINA SOYOIL     JAN3    9052   +38.00    9008    9092  353236
  CBOT SOY OIL     JUL2   48.39    +0.08   48.25   48.74    8101
  NYMEX CRUDE      JUL2   83.77    -0.20   83.56   84.92   25354
  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
  Crude in U.S. dollars per barrel
($1=3.198 Malaysian ringgit)	
 (Editing by Clarence Fernandez)	

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