Palm futures gain on expectations of bullish industry data

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KUALA LUMPUR (June 11): Malaysian palm oil futures rebounded to jump up to 1% on Tuesday from two sessions of sharp declines on expectations of upbeat official industry data due later this week.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.85% at RM2,011 (US$483.12) per tonne at the midday break, in line for its first gain in three days.       

"The market was earlier oversold and the anticipation for supportive industry data supported a rebound (in palm prices)," said a Kuala Lumpur-based futures trader, referring to data from industry regulator and Malaysian Palm Oil Board (MPOB).

The MPOB will publish palm oil inventory, production and export data for May on June 12 after 0430 GMT instead of June 10 as previously scheduled, the MPOB said.

A Reuters survey showed Malaysia's palm oil stocks likely hit a 10-month low by end-May, falling 9.7% from April to 2.46 million tonnes, which would help support benchmark palm oil prices.

Meanwhile, production is seen easing 2% to 1.61 million tonnes from April, while exports likely rose 3.3% on-month to 1.71 million tonnes.

In other related oils, the Chicago July soybean oil contract dipped 0.04%, and the September soyoil contract on the Dalian Commodity Exchange edged up 0.1%.

The Dalian September palm oil contract rose 0.1%.

Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.  

Palm, soy and crude oil prices at 0516 GMT

Contract          Month    Last  Change     Low   High  Volume
MY PALM OIL       JUN9     1990  +19.00    1975   1990      13
MY PALM OIL       JUL9     2004  +18.00    1989   2010    1983
MY PALM OIL       AUG9     2011  +17.00    1996   2019    8600
CHINA PALM OLEIN  SEP9     4394   +2.00    4376   4398  250230
CHINA SOYOIL      SEP9     5462   +6.00    5440   5482  261952
CBOT SOY OIL      JUL9    27.37   -0.01   27.32  27.44    2538
INDIA PALM OIL    JUN9   499.70   +0.80  499.30  501.5     146
INDIA SOYOIL      JUN9   744.65   +0.40  744.05  745.5     220

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 = RM4.1625)
(US$1 = 69.4350 Indian rupees)
(US$1 = 6.9165 Chinese yuan)