VEGOILS-Palm oil marks strongest daily gain in nearly five months
* Palm climbs to one-week high of 2,525 rgt/T
* Technical rebound, falling output in Dec supports mkt
-traders
* Palm oil targets 2,491 ringgit/tonne -Technicals
(Updates with closing prices)
By Emily Chow
KUALA LUMPUR, Dec 15 (Reuters) - Malaysian palm oil futures
notched up their biggest daily gain in nearly five months on
Friday, rising over 2 percent on a technical rebound and
expectations that production will decline this month.
The benchmark palm oil contract for February delivery
on the Bursa Malaysia Derivatives Exchange was up 2.7
percent at 2,518 ringgit ($618) at the close of trade, its first
gain in three sessions and its sharpest rise since July 25.
It earlier hit an intraday high of 2,525 ringgit, its
highest level in a week, and rose 1.6 percent on the week after
six consecutive weekly falls.
Palm oil, however, hit its lowest since August 2016 on
Thursday due to high inventories and low demand, and has shed
3.3 percent so far this month after declining 7.5 percent in
November.
Trading volumes totalled 64,331 lots of 25 tonnes each on
Friday.
"The market is seeing a technical rebound after a sharp
drop, it looks like yesterday it reached its bottom," said a
futures trader in Kuala Lumpur.
"The market may start moving higher from now, as all
negative factors are priced in."
Malaysian palm oil stocks at the end of November rose to
2.56 million tonnes, the highest since late 2015, while cargo
surveyor data showed exports in the first half of December fell
9.6 percent from a month earlier.
"Also, expectations are rife that production in December may
come down much lower, in line with seasonal trends," said
another trader.
Palm oil production typically peaks in the third quarter of
the year before declining towards the year end and into the
start of the following year.
Palm oil could break a resistance at 2,462 ringgit per tonne
and rise towards the next resistance at 2,491 ringgit, according
to Reuters market analyst for commodities and energy technicals
Wang Tao.
In other related oils, the January soybean oil contract
on the Chicago Board of Trade rose 0.9 percent, while the
January soybean oil contract on the Dalian Commodity Exchange
was down 0.9 percent.
The Dalian January palm olein contract dipped 0.2
percent.
Palm oil prices are affected by other edible oils as they
compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1126 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC7 2345 +6.00 2325 2376 147
MY PALM OIL JAN8 2472 +68.00 2399 2487 1473
MY PALM OIL FEB8 2515 +66.00 2440 2525 22672
CHINA PALM OLEIN MAY8 5246 -16.00 5214 5256 258884
CHINA SOYOIL MAY8 5802 -40.00 5790 5828 242042
CBOT SOY OIL JAN8 33.48 +0.30 33.05 33.5 7076
INDIA PALM OIL DEC7 565.20 +4.20 560.00 567.9 1213
INDIA SOYOIL DEC7 716.9 +3.45 714.5 717.5 1730
NYMEX CRUDE JAN8 57.40 +0.36 57.06 57.47 38193
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 = 4.0780 ringgit)
($1 = 64.0650 Indian rupees)
($1 = 6.6071 Chinese yuan renminbi)
(Reporting by Emily Chow; Editing by Subhranshu Sahu and Susan
Fenton)