* Soybeans hit contract high on drought damage
* Malaysia's Aug 1-25 exports up 5.7 pct -ITS
* Palm oil to consolidate in 3,044-3,097 ringgit range
* Refiners to pay less for palm in Malaysia's top producing
By Chew Yee Kiat
SINGAPORE, Aug 27 Malaysian crude palm oil
futures rose to a 6-week high on Monday, as traders continued to
bet on tight global edible oil supplies with no sign of the
drought easing in the soy-producing U.S. Midwest.
U.S. new-crop soybeans hit a contract high on Monday after
farm newsletter Pro Farmer estimated U.S. soybean production
would be worse than forecasts by the U.S. Department of
A smaller supply of soybeans to be crushed into soybean oil
had widened palm oil's discount to soybean oil to above $250 per
tonne, shifting more demand to the cheaper tropical oil.
"There's a lot more upside for crude palm oil prices because
so far palm oil has been lagging behind soybean oil," said James
Ratnam, an analyst with TA Securities in Malaysia.
"The second thing is that there could be new stimulus
measures coming out from China and the U.S. that could boost
The benchmark November 2012 contract on the Bursa
Malaysia Derivatives Exchange gained 0.7 percent to close at
3,091 ringgit ($994) per tonne after touching an intraday high
at 3,122 ringgit, a level last seen since July 17.
Total traded volumes stood at 25,999 lots of 25 tonnes each,
just slightly higher than the usual 25,000 lots.
Palm oil will consolidate further in the range of
3,044-3,097 ringgit per tonne before climbing up towards 3,183
ringgit, Reuters market analyst Wang Tao said.
Demand appears to be picking up with Malaysia's exports
rising 5.7 percent for the Aug 1-25 period from a month ago,
cargo surveyor Intertek Testing Services said on Saturday.
Traders will be watching for further indications on export
trends as another cargo surveyor, Societe Generale de
Surveillance, releases its Aug 1-20 data together with Aug 1-25
data later in the day.
Refiners in Malaysia's top oil palm growing state of Sabah
will pay millers less for edible oil from next month to preserve
margins and better compete with Indonesia, the Business Times
reported on Monday, in a move likely to hit planters' revenues.
Planters are also concerned by a possible return of El Nino
to South East Asia as the hot and dry weather pattern can deal
serious damage to palm oil production in Indonesia and Malaysia.
Oil futures rose more than a dollar on Monday, with Brent
climbing above $115 per barrel, on supply worries as Tropical
Storm Isaac threatened to interrupt most U.S. offshore oil
production in the Gulf of Mexico.
Other vegetable oil markets also traded higher on an oilseed
supply squeeze due to the U.S. dry weather.
By 1005 GMT, the most active U.S. soyoil contract for
December delivery gained 1 percent and the most active
January 2013 soyoil contract on the Dalian Commodity
Exchange rose 1.4 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP2 3032 +2.00 3032 3070 662
MY PALM OIL OCT2 3068 +17.00 3065 3098 3292
MY PALM OIL NOV2 3091 +22.00 3087 3122 16953
CHINA PALM OLEIN JAN3 8284 +110.00 8240 8338 383742
CHINA SOYOIL JAN3 10130 +142.00 10076 10156 495306
CBOT SOY OIL DEC2 57.46 +0.56 57.07 57.85 8017
NYMEX CRUDE OCT2 97.14 +0.99 96.45 97.72 25004
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
(Additional reporting by Anuradha Raghu; Editing by Niluksi