Vegoils Palm oil jumps 3% at 2-mth high on soyoil rally

by **Cals** Tue 08 Dec 2015, 01:50

Vegoils

[size=28]Palm oil jumps 3% at 2-mth high on soyoil rally

By Reuters / Reuters | December 7, 2015 : 8:08 PM MYT
SINGAPORE (Dec 7): Malaysian palm oil closed almost 3% higher on Monday, climbing to a two-month high, with the market driven up by strong gains in rival soyoil prices and fears that dryness due to the El Nino weather pattern will cut yields.
Chicago soyoil futures jumped almost 4% in the last session to their highest since late July, on expectations that the U.S. Department of Agriculture will this week cut its production forecast and on signs of strong Chinese demand.
"Friday's soybean oil price action has lifted palm oil market today," said one Kuala Lumpur-based trader. "But people will now wait to see the MPOB data before taking their trading decisions."
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed up 2.9% or 69 ringgit to 2,435 ringgit (US$578) a tonne. It climbed to an intra-day high of 2,438 ringgit, the highest since Oct 6.
Traded volume stood at 44,782 lots of 25 tonnes each.
In the USDA monthly supply and demand report due on Wednesday, the government is expected to slash its soy supply forecast.
A key monthly indicator for El Niño has reached a level not seen since 1997, according to the U.S. weather agency, when the weather pattern caused heavy rains and flooding in parts of South America and severe drought hit crops in Indonesia.
Investors in the palm oil market are eyeing a monthly report from the Malaysian Palm Oil Board on stocks, output and exports in the world's second largest producer of the tropical product. It is due on Wednesday, after 0430 GMT.
Malaysian November palm stocks likely topped a previously reached near 15-year high on slowing exports, despite output falling in line with a year-end seasonal trend, a Reuters poll showed.

Energy prices continued to give bearish signals. Oil prices edged closer to 2015 lows on Monday, after OPEC failed to agree on a production curb to stem sliding prices and a stronger dollar made it more expensive to hold crude positions.
Palm oil sometimes takes price direction from the crude oil market, because of increasing use of vegetable oils in making renewable fuels, which compete with fuels refined from crude.
(US$1 = 4.212 ringgit)
  Palm, soy and crude oil prices at 1007 GMT

Contract        Month    Last   Change     Low    High Volume
MY PALM OIL      DEC5    2213   +24.00    2206    2217     100
MY PALM OIL      JAN6    2358   +66.00    2323    2358    3718
MY PALM OIL      FEB6    2435   +69.00    2400    2438   23890
CHINA PALM OLEIN MAY6    4788 +140.00    4644    4800 1051296
CHINA SOYOIL     MAY6    5766   +74.00    5648    5848 1020818
CBOT SOY OIL     JAN6   32.23    +7.80   31.96   32.37    7831
INDIA PALM OIL   DEC5 420.30    +7.80 414.00 420.90    2090
INDIA SOYOIL     DEC5 640.00    +9.35 632.50 640.00   18630
NYMEX CRUDE      JAN6   39.49    -0.48   39.20   40.15   43677

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
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