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VEGOILS-Palm oil up on soyoil gains; record stocks weigh on prices
January 15, 2013 / 6:30 AM / 5 years ago

VEGOILS-Palm oil up on soyoil gains; record stocks weigh on prices

* Malaysia's Jan. 1-15 exports down 20.7 pct from a month
ago -ITS
    * Shipments for same period down 22.2 pct on month -SGS
    * Malaysia sets Feb crude palm oil export tax at zero
    * Palm oil signals mixed -technicals

 (Updates prices, adds SGS export data)
    By Chew Yee Kiat
    SINGAPORE, Jan 15 (Reuters) - Malaysian palm oil futures
edged up on Tuesday, tracking increases in the price of rival
soybean oil, but gains were capped by persistently weak exports
and record high stocks in the world's second largest producer of
the edible oil.
    Exports of Malaysian palm oil products for Jan. 1 to 15 fell
20.7 percent to 570,510 tonnes from a month earlier, cargo
surveyor Intertek Testing Services said on Tuesday. 
    Another cargo surveyor, Societe Generale de Surveillance,
reported a steeper 22.2 percent fall for the same period.   
Shipments were also lower in the first 10 days of the month.
    The drop came amid China's stricter quality control rules on
edible oil imports that may have prompted some exporters to hold
back shipments.
    Exports to Europe also took a hit as buyers refrain from
purchasing palm oil, which solidifies in winter.    
    "The market is up a bit, tracking gains in Dalian and
Chicago soybean oil," said a trader with a foreign commodities
brokerage in Malaysia. "Exports were down but they were slightly
better than the first 10 days and we hope for further
improvement in the second half of the month."
    The benchmark March contract on the Bursa Malaysia
Derivatives Exchange gained 1.1 percent to close at 2,397
ringgit ($796) per tonne, taking its cue from U.S. March soyoil
futures, which had gained 2.5 percent in the previous
session as bargain hunting and hopes of Chinese buying boosted
    Total traded volume stood at 42,040 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Technical analysis shows mixed signals for Malaysian palm
oil as it is not clear that a downtrend starting from the Jan. 2
high of 2,524 ringgit will be reversed, Reuters market analyst
Wang Tao said. 
    Malaysia will set its crude palm oil export tax for February
at zero percent, unchanged from January, a government circular
showed on Tuesday, and traders hope the zero percent tax will
help clear record-high palm oil stocks, which stood at 2.63
million tonnes in December. 
    Brent crude rose above $112 per barrel on Tuesday, although
a lack of an agreement over the U.S. debt ceiling and a forecast
increase in the country's oil inventory still weighed on prices.
    U.S. soyoil for March delivery edged 0.2 percent higher in
late Asian trade. The most active May soybean oil contract
 on the Dalian Commodity Exchange closed 0.5 percent
  Palm, soy and crude oil prices at 1010 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JAN3    2330   +54.00    2298    2330      42
  MY PALM OIL      FEB3    2375   +35.00    2355    2380     677
  MY PALM OIL      MAR3    2397   +26.00    2382    2413   15129
  CHINA PALM OLEIN MAY3    6726   +24.00    6718    6788  464414
  CHINA SOYOIL     MAY3    8594   +44.00    8584    8658  306024
  CBOT SOY OIL     MAR3   50.56    +0.11   50.38   50.79    7887
  NYMEX CRUDE      FEB3   94.35    +0.21   93.71   94.44   19947
  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=3.01 ringgit)

 (Editing by Clarence FErnandez)

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