VEGOILS-Palm hits 2-mth high on hopes stocks will ease

Fri Jun 7, 2013 6:25am EDT

* Up for third session, posts fifth straight weekly gain
    * May end-stocks, June 1-10 export data due on Monday
    * Malaysia May palm oil stocks likely eased to 1.78 mln T
-Reuters poll
    * Palm oil to peak around 2,457 ringgit -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, June 7 (Reuters) - Malaysian palm oil futures
climbed to their highest in more than two months on Friday,
posting a fifth straight weekly gain, as investors placed
further bets that stocks of the edible oil in the world's No.2
producer would ease in May.
    Inventory levels most likely fell from April's 1.93 million
tonnes to 1.78 million tonnes in May, the lowest in almost a
year, as export demand and local consumption outstripped
production, a Reuters survey showed. 
    Industry regulator the Malaysian Palm Oil Board (MPOB) will
release official stocks data on Monday, while cargo surveyors'
exports data for June 1-10 due on the same day may also show an
improvement compared to a month ago.   
    "We are seeing more position taking ahead of the MPOB data.
On top of that, we are also seeing more orders coming in from
India for Ramadan," said a trader with a local commodities
brokerage in Kuala Lumpur, referring to the Muslim holy month
starting in July that typically sees a rise in consumption.
    At market close, the benchmark August contract on
the Bursa Malaysia Derivatives Exchange was up 0.9 percent at
2,457 ($795) ringgit per tonne, below its intraday high at 2,471
ringgit, its loftiest since March 27.
    Total traded volumes stood at 42,434 lots of 25 tonnes each,
higher than the average 35,000 lots. 
    Technicals showed palm oil is expected to peak around 2,457
ringgit per tonne, as indicated by its wave pattern, Reuters
market analyst Wang Tao said. 
    For the week, palm oil gained 2.5 percent on hopes of lower
stocks and higher restocking demand from India and Pakistan.    
    In other markets, Brent futures rose above $104 a barrel,
supported by a sharp fall in the dollar and expectations of
ongoing U.S. economic stimulus, putting the contract on course
for its biggest weekly gain since late April. 
    In vegetable oil markets, U.S. soyoil for July 
climbed 0.6 percent in late Asian trade. The most-active
September soybean oil contract on the Dalian Commodities
Exchange gained 1.3 percent.         
  Palm, soy and crude oil prices at 1002 GMT
                                                                                          
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUN3    2425   +36.00    2398    2425     112
  MY PALM OIL      JUL3    2454   +30.00    2424    2466    2511
  MY PALM OIL      AUG3    2457   +22.00    2436    2471   20486
  CHINA PALM OLEIN SEP3    6358  +214.00    6152    6382 1177478
  CHINA SOYOIL     SEP3    7496   +94.00    7356    7508  788414
  CBOT SOY OIL     JUL3   48.47    +0.31   47.95   48.50    7582
  NYMEX CRUDE      JUL3   95.14    +0.38   94.62   95.18   14155
                                                                                          
  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=3.092 ringgit)

 (Editing by Himani Sarkar)