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VEGOILS-Palm extends gains to near 5-month high on lower production outlook

CommoditiesJan 24, 2019 10:40
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VEGOILS-Palm extends gains to near 5-month high on lower production outlook

* Palm hits 2,294 ringgit/tonne, highest since Sept 5

* Short-covering, overnight gains in CBOT soyoil help - trader

* Palm oil may rise more into 2,304-2,322 ringgit range - techs

By Emily Chow

KUALA LUMPUR, Jan 24 (Reuters) - Malaysian palm oil futures extended gains on Thursday to hit their highest in nearly five months on expectations of declining production.

The benchmark palm oil contract for April delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 0.2 percent at 2,287 ringgit ($552.95) a tonne at the midday break, heading for a fifth straight session of gains.

The contract earlier rose to its highest since Sept. 5, 2018 at 2,294 ringgit.

Trading volumes stood at 6,419 lots of 25 tonnes each at noon. 1FCPO-TOT

"Palm is up on lower production (expectations) and short-covering, and tracking overnight soyoil (on the Chicago Board of Trade)," said a Kuala Lumpur-based futures trader. "The technical outlook is positive for palm."

Palm oil production in January is expected to decline from the previous month, in line with seasonal trend. Production fell 2 percent to 1.81 million tonnes in December. MYPOMP-CPOTT

Meanwhile, the Chicago March soybean oil contract BOH9 rose 1.1 percent on Wednesday, in line with gains in U.S. soybean futures and on worries of poor crop weather reducing yield potential in South America. GRA/

Soybean oil prices were last up 0.2 percent on Thursday.

In other related oils, the May soybean oil contract on the Dalian Commodity Exchange DBYK9 rose 0.4 percent, and the Dalian January palm oil contract DCPF9 gained 0.6 percent.

Palm oil prices are impacted by movements in soyoil rates, as they compete for a share in the global vegetable oil market.

Palm oil may rise more into a range of 2,304-2,322 ringgit, as it has cleared a resistance at 2,274 ringgit per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals. soy and crude oil prices at 0444 GMT: Contract

Month

Last Change

Low

High Volume MY PALM OIL

FEB9

2199 +8.00

2190

2199

167 MY PALM OIL

MAR9

2256 +5.00

2247

2260

480 MY PALM OIL

APR9

2287 +4.00

2278

2294

3556 CHINA PALM OLEIN MAY9

4780 +26.00

4752

4788 326374 CHINA SOYOIL

MAY9

5700 +24.00

5660

5714 286894 CBOT SOY OIL

MAR9

29.43 +0.05 29.34 29.47

3842 INDIA PALM OIL

JAN9 554.40 -0.10 553.30 554.8

26 INDIA SOYOIL

FEB9

763 +2.10

761 763.7

2230 NYMEX CRUDE

MAR9

52.43 -0.19 52.17 52.72 34950 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 India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel ($1 = 4.1360 ringgit) ($1 = 71.2750 Indian rupees) ($1 = 6.7851 Chinese yuan)

VEGOILS-Palm extends gains to near 5-month high on lower production outlook
 

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