December 19, 2011 / 5:25 AM / 6 years ago

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
    * Malaysian production seen down 14.5 pct for Dec 1-15
    * Cargo surveyors to report Malaysian 1-20 exports on

    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)
0 : 0
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