July 26, 2013 / 10:17 AM / 4 years ago

VEGOILS-Palm oil ends up, off 4-year low; posts weekly loss

* Slight rebound in palm oil, but soy weakness weighs
    * Palm oil touched 2,137 ringgit/tonne, lowest since Oct
    * Prices down 3.5 pct for the week, 4th weekly loss in five

 (Updates prices, milestones)
    By Chew Yee Kiat
    SINGAPORE, July 26 (Reuters) - Malaysian palm oil futures
ended higher on Friday as traders picked up deals after prices
plumbed a near four-year low earlier in the session, although
forecasts for higher global oilseed supplies continued to cap
    Palm oil prices dropped to their lowest since October 2009
amid worries ideal weather in the U.S. Midwest could lead to a
record soybean harvest, boosting soyoil supplies and shifting
demand away from the competing tropical oil.        
    "Today we see a little bit of retracement in an oversold
market, as prices have been going down for the past three days
due to the bearish grains complex," said a trader with a foreign
commodities brokerage in Kuala Lumpur. 
    At market close, the benchmark October contract on
the Bursa Malaysia Derivatives Exchange had edged up 0.4 percent
to 2,178 ringgit ($679) per tonne, after earlier falling to
2,137 ringgit, a level not seen since October 2009.  
    Total traded volume stood at 46,631 lots of 25 tonnes each,
higher than the average 35,000 lots. Prices moved between 2,137
and 2,189 ringgit.       
    Palm oil posted a 3.5 percent drop this week, its fourth
weekly loss in five, pressured by weakness in the soybean
complex as buyers eye a bumper harvest and soft export demand.
    Malaysian palm oil exports for July 1-25 fell 6-7 percent
from the same period a month ago, showing a recovery from the
steeper 24 percent drop seen in the first half of the month.
Cargo surveyors will release export data for the full month on
    "Exports should start to recover towards the end of the
month, probably showing a 5 percent decline. For the next 2-3
days, we are talking about support at 2,100 ringgit and
resistance at 2,200 ringgit," the trader said.
    In other markets, oil prices fell on worries over a looming
Chinese economic slowdown and decades-high oil output in the
United States but stayed just above $107 per barrel due to a
weak U.S. dollar and several supply disruptions. 
    In vegetable oil markets, the U.S. soyoil contract for
December fell 0.6 percent in late Asian trade. The
most-active January soybean oil contract on the Dalian
Commodities Exchange slumped 2.5 percent.        
  Palm, soy and crude oil prices at 1004 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      AUG3    2256   -15.00    2222    2268     394
  MY PALM OIL      SEP3    2220   +21.00    2177    2225    5711
  MY PALM OIL      OCT3    2178    +8.00    2137    2189   23528
  CHINA PALM OLEIN JAN4    5368  -150.00    5360    5488  506426
  CHINA SOYOIL     JAN4    6986  -176.00    6960    7130 1058366
  CBOT SOY OIL     DEC3   43.60    -0.25   43.35   43.99   10353
  NYMEX CRUDE      SEP3  104.80    -0.69  104.61  105.63   16265
  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=3.2065 ringgit)

 (Editing by Himani Sarkar)

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