Vegoils Palm oil rebounds tracking small recovery in soy

by **Cals** Thu 13 Aug 2015, 20:28

Vegoils
Palm oil rebounds tracking small recovery in soy

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By Reuters / Reuters | August 13, 2015 : 7:47 PM MYT

JAKARTA (Aug 13): Malaysian palm oil futures posted their biggest gain in more than three weeks on on Thursday, tracking a recovery in the soy market, as buyers were tempted back after by market weakness.

By the close, the benchmark palm oil contract for October on the [size=14]Bursa Malaysia Derivatives Exchange ended 0.95 percent higher to 2,017 ringgit ($503.24) a tonne. It regained some of its 2.2 percent lost posted a day earlier.

Prices earlier touched a more than 11-month low of 1,958 ringgit, but later recovered losses to hit a high at 2,020 ringgit. Palm is down 1.2 percent so far this week.

Traded volume stood at 51,651 lots of 25 tonnes each, above the roughly 35,000 lots usually traded by the close.

"The market is a little bit oversold now, so there's a retracement there," said a trader with a foreign commodities brokerage in Kuala Lumpur.

Palm oil price discounts compared to soybean oil widened to around $150 per tonne, from about $120-$130 in the past couple of months, said Rabobank analyst Pawan Kumar. The widening discounts make palm more attractive to buyers.

The Malaysian ringgit was firmer, but still hovered near its 17-year low, offering support to palm oil prices for overseas customers as benchmark palm oil is priced in the local currency.

However, the U.S. Department of Agriculture forecast the 2015-16 soybean harvest at 3.916 billion bushels based on an average yield of 46.9 bushels per acre. Both figures are better than previously estimated, capping the increase in palm oil prices.

In other vegetable oils, the U.S. September soyoil contract rose 0.2 percent in late Asian trade, rebounding from its biggest loss in more than a month in the previous session, while the most active soybean oil contract on theDalian Commodity Exchange inched up 0.04 percent.

Crude oil rose as lower U.S. crude stocks and optimistic global demand projections overrode concerns about a glut of supply.

China let its currency decline for the third day on Thursday, raising concern that demands could fall from the top palm oil buyer.

Asian shares gained taking reassurance from China's central bank that there was no basis for further yuan depreciation after it devalued the currency earlier this week.

Palm, soy and crude oil prices at 1042 GMT

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Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	AUG5	0	+16.00	0	0	0
MY PALM OIL	SEP5	2003	+16.00	1952	2008	1410
MY PALM OIL	OCT5	2017	+19.00	1958	2020	18843
CHINA PALM OLEIN	JAN6	4628	-4.00	4502	4724	985244
CHINA SOYOIL	JAN6	5604	+2.00	5466	5736	992694
CBOT SOY OIL	DEC5	29.55	+0.50	29.29	29.62	7982
INDIA PALM OIL	AUG5	394.00	+0.50	389.60	394.40	840
INDIA SOYOIL	AUG5	579.50	-0.75	575.60	579.80	5250
NYMEX CRUDE	SEP5	43.41	+0.11	43.17	43.72	27967

[size]

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 = 4.0080 ringgit)
($1 = 65.1000 Indian rupees)
($1 = 6.3982 Chinese yuan renminbi)
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