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VEGOILS-Palm oil rebounds after five straight losses
July 17, 2013 / 10:18 AM / 4 years ago

VEGOILS-Palm oil rebounds after five straight losses

* Palm oil up from previous day's 7-mth low of 2,222 ringgit
    * Soybean, oilseed prices to fall after big crops -Oil World
    * Prices down 6.9 percent so far this year

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, July 17 (Reuters) - Malaysian palm oil futures
rose on Wednesday, as bargain hunters emerged after five
straight days of losses, although optimism was subdued by rising
oilseed supplies and weak export demand.
    Palm oil prices fell to the lowest level this year on
Tuesday, luring buyers back into the market, but traders said
the tropical oil is likely to remain under pressure. 
    Slowing demand after the start of Ramadan knocked Malaysian
palm oil exports down as much as 24 percent during the first
half of July from a month ago, cargo surveyor data
    The start of a higher production cycle in the second half of
the year also raised concerns over inventory levels climbing
this month. Malaysian palm oil stocks fell to 1.65 million
tonnes in June, their lowest in over two years.
    "The market lost over 150 ringgit in the past few days, so
there's bound to be some correction," said a trader with a
foreign commodities brokerage in Kuala Lumpur. "But fundamentals
are still vulnerable. Demand from key destinations like India
was weak and oilseed supplies are on the rise."
    The benchmark October contract on the Bursa
Malaysia Derivatives Exchange gained 1.1 percent to close at 
2,252 ringgit ($706) per tonne on Wednesday. That pulled it away
from Tuesday's low of 2,222 ringgit, a level unseen since Dec.
    Total traded volume stood at 40,220 lots of 25 tonnes each,
higher than the average 35,000 lots. Prices moved between 2,236
to 2,274 ringgit.          
    Global prices of oilseeds including soybeans and soymeal are
likely to fall in the coming year as large crops loom, according
to Hamburg-based oilseeds analysts Oil World.   
    Higher supplies of soybeans to be crushed into soybean oil
could further depress prices of competing palm oil, which has
lost almost 7 percent in value so far this year.    
    In other markets, Brent crude oil slipped below $108 a
barrel on Wednesday as the dollar gained ahead of comments from
Federal Reserve Chairman Ben Bernanke on the U.S. central bank's
plan to roll back its monetary stimulus. 
    In vegetable oil markets, the U.S. soyoil contract for
December was up 0.1 percent in late Asian trade. The
most-active January soybean oil contract on the Dalian
Commodities Exchange rose 0.7 percent.    
  Palm, soy and crude oil prices at 1003 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      AUG3    2276   +17.00    2271    2297     430
  MY PALM OIL      SEP3    2269   +24.00    2254    2293    7098
  MY PALM OIL      OCT3    2252   +24.00    2236    2274   18787
  CHINA PALM OLEIN JAN4    5616   -24.00    5590    5662  647856
  CHINA SOYOIL     JAN4    7240   +48.00    7194    7302  739950
  CBOT SOY OIL     DEC3   45.33    +0.05   45.28   45.72    5759
  NYMEX CRUDE      AUG3  105.49    -0.51  105.11  105.85   18988
  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=3.19 ringgit)

 (Editing by Tom Hogue)

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