Vegoils Palm oil rebounds as year-end monsoon seen impacting output

by **Cals** Wed 30 Dec 2015, 01:06

Vegoils

[size=28]Palm oil rebounds as year-end monsoon seen impacting output

By Reuters / Reuters | December 29, 2015 : 7:02 PM MYT

KUALA LUMPUR (Dec 29): Malaysian palm oil futures rose on Tuesday to touch a fresh 18-month high after falling in the previous session, gaining support on concerns production will be affected in the rainy monsoon season.

The benchmark palm oil contract for March on the Bursa Malaysia Derivatives Exchange gained 1.5% to RM2,486 (US$580.16) a tonne at the end of the trading day. The contract earlier hit RM2,497, its highest since June 26, 2014.

"The market is up on the back of floods in the east coast and persistent rains, as forecast by the meteorological department," said a trader based in Kuala Lumpur, referring to the eastern states in Peninsular Malaysia which face the South China Sea.

Traded volume stood at 31,586 lots of 25 tonnes each at the closing trade.

The year end monsoon season brings heavy rains and floods across Southeast Asia and lowers palm oil output, making it difficult to gather fresh fruit bunches and disrupting supply chains.

Inventories in Malaysia, the world's second-largest palm oil producer after Indonesia, are at an all time high of nearly 3 million tonnes. Lower production would help reduce current stockpiles and support prices.

In competing vegetable oil markets, both the US January soyoil contract and the May soybean oil contract on theDalian Commodity Exchange were up 1.2% and 0.8%, respectively.

Palm, soy and crude oil prices at 1005 GMT

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Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	JAN6	2288	+40.00	2240	2293	335
MY PALM OIL	FEB6	2411	+39.00	2355	2422	2008
MY PALM OIL	MAR6	2486	+37.00	2430	2497	21093
CHINA PALM OLEIN	MAY6	4814	+112.00	4618	4828	1374896
CHINA SOYOIL	MAY6	5658	+44.00	5548	5662	628456
CBOT SOY OIL	MAR6	30.78	+2.00	30.36	30.94	6201
INDIA PALM OIL	DEC5	401.20	+2.00	400.30	402.70	689
INDIA SOYOIL	JAN6	619.65	+4.45	617.00	621.80	24250
NYMEX CRUDE	FEB6	36.95	+0.14	36.66	37.03	18655

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Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.2850)
(US$1 = 66.3400 Indian rupees)
(US$1 = 6.4832 Chinese yuan)

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