REFILE-VEGOILS-S.American crop weather lifts palm oil as markets drop
(Refiles to correct headline) * S.American soy crop weather supporting palm oil * Kim Jong-il's death adds to euro zone-driven sell-off in mkts * Malaysian production seen down 14.5 pct for Dec 1-15 * Cargo surveyors to report Malaysian 1-20 exports on Tuesday By Niluksi Koswanage KUALA LUMPUR, Dec 19 (Reuters) - Malaysian crude palm oil futures rose on Monday as investors grew concerned over hot weather hurting the South American soy crop, which could potentially limit global supplies of edible oil. Gains were still muted on a sell-off in Asian financial markets, driven by worries of instability in the unpredictable state of North Korea and its nuclear programme after the death of leader Kim Jong-il, announced on Monday. Traders said financial markets' focus on Kim Jong-il's death could shift back to possible credit rating downgrades of several European countries that could disrupt progress in resolving the debt crisis and stall global economic growth. "There is some spillover from equities markets' downtrend into palm oil. Eventually, the market will also have to turn back to its own fundamentals of slowing exports and production," said a trader with a foreign commodities brokerage. Benchmark March palm oil futures <0#FCPO:> on the Bursa Malaysia Derivatives Exchange settled up 1.2 percent at 3,020 ringgit ($950). Traded volumes stood at 16,811 lots of 25 tonnes each, compared with the usual 12,500 lots on investor caution over the possible tensions in the Korean peninsula and Europe downgrade fears. Malaysia's weather office raised its weather warning to orange, saying heavy rains would continue until Thursday in parts of the key oil palm growing state of Johor that accounts for almost a fifth of national output. Seasonally weaker yields and monsoon rains in No.2 producer Malaysia have brought production in the first fifteen days in December lower by 14.5 percent, traders and planters said. That signals overall production this month will go well below the 14.8 percent decline seen in November, possibly propping up prices that have fallen more than 21 percent so far this year. But exports from Malaysia are also falling as top buyers slow orders before the year end, freeing up some space for palm oil stocks that have started to tighten a little. Cargo surveyors will report Dec. 1-20 export data on Tuesday. The market says exports during this period may have fallen about 11 percent to 920,000 tonnes from 1.04 million tonnes in Nov 1-20. Brent crude futures fell below $103 on Monday, as ongoing concerns over the euro zone debt crisis and the prospect of regional instability after the death of North Korea's leader weighed on riskier assets. U.S. soyoil for January delivery climbed 0.8 percent in Asian trade on concerns of dry weather in parts of Brazil and Argentine raised concerns of tight supply. Intially the market fell on higher U.S. dollar clouding the appeal of U.S. priced commodities. The most active Sept 2012 soyoil contract on China's Dalian commodity exchange also rose. Palm, soy and crude oil prices at 1029 GMT Contract Month Last Change Low High Volume MY PALM OIL JAN2 3017 +31.00 2990 3018 340 MY PALM OIL FEB2 3020 +35.00 2986 3022 4136 MY PALM OIL MAR2 3020 +36.00 2984 3020 10092 CHINA PALM OLEIN MAY2 7828 +16.00 7790 7882 118534 CHINA SOYOIL SEP2 8852 +88.00 8794 8866 383438 CBOT SOY OIL JAN2 49.88 +0.33 49.45 50.05 7018 NYMEX CRUDE JAN2 93.98 +0.46 92.54 94.33 7457 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 Crude in U.S. dollars per barrel ($1 = 3.1780 ringgit)
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