By Emily Chow
KUALA LUMPUR (Reuters) - Malaysian palm oil futures rose on Monday, and were in line to snap four sessions of losses, tracking overnight gains in U.S. soyoil.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.5 percent at 2,277 ringgit ($564.59) a tonne at noon.
Trading volumes stood at 9,127 lots of 25 tonnes each at the midday break.
"Palm is up tracking U.S. soyoil overnight prices," said a futures trader in Kuala Lumpur, referring to soyoil prices on the Chicago Board of Trade which jumped 1.5 percent on Friday.
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"In the medium term, however, the market is expecting production to rise from now until September on a seasonal basis," added the palm oil trader, explaining that this could further dampen benchmark prices.
Palm oil production typically rises in the third quarter of the year in line with the seasonal trend. Malaysian output for June is forecast to slide 11.1 percent to 1.36 million tonnes, its weakest figure for June since 2007, due to a labour shortage, according to a Reuters poll. [PALM/POLL]
Official data will be released by the Malaysian Palm Oil Board on Tuesday after 0430 GMT.
In other related oils, the Chicago December soybean oil contract was down 0.1 percent, while the September soybean oil on China's Dalian Commodity Exchange rose 0.1 percent.
Meanwhile, the Dalian September palm oil contract declined 0.7 percent.
Palm oil prices track the performance of other edible oils as they compete for a share in the global vegetable oils market.
Palm oil looks neutral in a range of 2,270-2,290 ringgit per tonne, and an escape could suggest a direction, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0615 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL8 0 +0.00 0 0 0
MY PALM OIL AUG8 2274 +10.00 2270 2290 424
MY PALM OIL SEP8 2277 +11.00 2272 2288 4466
CHINA PALM OLEIN SEP8 4796 -31.00 4788 4842 168076
CHINA SOYOIL SEP8 5612 -2.00 5602 5652 212920
CBOT SOY OIL DEC8 29.44 -0.02 29.24 29.56 2705
INDIA PALM OIL JUL8 632.00 +2.20 627.10 632.4 205
INDIA SOYOIL JUL8 757.7 +2.65 756.8 759 3940
NYMEX CRUDE AUG8 74.19 +0.39 73.74 74.28 40421
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 = 4.0330 ringgit)
($1 = 68.6650 Indian rupees)
($1 = 6.6206 Chinese yuan)
(Reporting by Emily Chow; Editing by Sunil Nair)
Disclaimer: No Business Standard Journalist was involved in creation of this content
