VEGOILS-Palm edges higher on overnight soyoil; output concerns cap gains
* Palm up 0.6 pct on-week so far
* Market expecting higher output figures on-year - trader
* Palm oil may edge up to 2,285 ringgit/T before falling -
techs
By Emily Chow
KUALA LUMPUR, Feb 22 (Reuters) - Malaysian palm oil futures
edged up at the midday break on Friday, in line for a second day
of gains, tracking overnight increases in soyoil on the U.S.
Chicago Board of Trade.
The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at
2,267 ringgit ($555.50) a tonne at the midday break.
It earlier rose to 2,278 ringgit, its highest level in three
sessions, and is up 0.6 percent for the week so far.
Trading volumes stood at 11,798 lots of 25 tonnes each at
noon. (1FCPO-TOT)
"Overnight rallies in rival oilseed prompted palm oil prices
to open higher," said a Kuala Lumpur based futures trader,
however adding that gains were capped as industry players were
forecasting higher than usual output levels.
Palm oil seasonally sees monthly production declines in the
first quarter of the year. Official data last showed that output
in Malaysian fell 3.9 percent in January to 1.74 million tonnes
from the previous month.
The levels, however, were higher than the 1.59 million
tonnes of recorded production in January last year, and 1.28
million tonnes in 2017. (MYPOMP-CPOTT)
Traders are also forecasting February output levels to fall
on-month from January, but that levels would be higher compared
with the corresponding month last year.
In other related oils, the Chicago March soybean oil
contract jumped 1.8 percent on Thursday, as U.S. and
China trade negotiators sketched an outline for what could be a
deal to end the trade war.
It was, however, last down on Friday by 0.5 percent.
Meanwhile, the May soyoil contract on the Dalian Commodity
Exchange rose 0.6 percent and the Dalian May palm oil
contract was up 0.3 percent.
Palm oil prices are affected by movements in soyoil, as they
compete for a share in the global vegetable oil market.
Palm oil may edge up to 2,285 ringgit per tonne before
falling towards a support at 2,237 ringgit, said Wang Tao, a
Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0515 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR9 2147 +2.00 2147 2158 215
MY PALM OIL APR9 2237 +4.00 2235 2249 2254
MY PALM OIL MAY9 2267 +3.00 2264 2278 6343
CHINA PALM OLEIN MAY9 4720 +12.00 4714 4754 232554
CHINA SOYOIL MAY9 5722 +34.00 5708 5758 259526
CBOT SOY OIL MAR9 30.33 -0.16 30.3 30.48 2760
INDIA PALM OIL FEB9 567.60 -0.80 566.60 568.3 36
INDIA SOYOIL MAR9 769.8 -0.10 769 772 1370
NYMEX CRUDE APR9 56.86 -0.10 56.71 56.99 18320
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 = 4.0810 ringgit)
($1 = 71.1760 Indian rupees)
($1 = 6.7281 Chinese yuan)
(Reporting by Emily Chow; Editing by Rashmi Aich)
