January 21, 2013 / 5:41 AM / 5 years ago

VEGOILS-Palm oil up on soy concerns, slow exports limit gains

* Malaysia's Jan 1-20 palm exports down 17.3 pct on month
    * Shipments fall 20 pct for same period -SGS
    * Palm oil may retest resistance at 2,449 ringgit
    * Malaysia's weather office issues heavy rain warning for
Pahang, Johor

 (Updates prices, adds SGS exports data)
    By Chew Yee Kiat
    SINGAPORE, Jan 21 (Reuters) - Malaysian palm oil futures
edged up on Monday, supported by dry weather concerns in South
America's soy-producing regions although gains were limited by
the latest cargo surveyor data pointing to weaker exports of the
tropical oil.
    A turn to dry weather in Argentina and in southern Brazil
may lead to a lower supply of soybeans and soybean oil, shifting
some demand to competing palm oil that is trading at a hefty
discount of above $300.
    But price upside could be limited as exports continued to
fall, easing 17.3 percent for the first 20 days of the month to
830,830 tonnes from 1,004,159 tonnes a month ago, cargo surveyor
Intertek Testing Services said on Monday. 
    Another cargo, surveyor Societe Generale de Surveillance,
reported a 20 percent decline to 813,778 tonnes for the same
    "The market is holding on South American weather worries and
some chart-based buying interest," said a trader with a local
commodities brokerage in Malaysia. "But at the same time exports
are lower and end-stocks are building up."   
    At the close, the benchmark March contract on the
Bursa Malaysia Derivatives Exchange gained 0.8 percent to 2,420
ringgit ($798) per tonne.
    Total traded volume stood at 25,074 lots of 25 tonnes each,
a tad higher than the usual 25,000 lots.
    Technical analysis shows palm oil may retest resistance at
2,449 ringgit per tonne, a break above which will lead to a
further gain to 2,522 ringgit, said Reuters market analyst Wang
    Malaysia's weather office issued a heavy rain advisory on
Monday, saying intermittent rain may cause floods over low-lying
areas that could disrupt production in key palm producing states
of Pahang and Johor.
    A lower output may help ease Malaysian palm oil stocks,
currently at a record-high 2.63 million tonnes, although traders
point out that exports are also lower. 
    Market participants will also be looking out for the impact
of India's latest crude edible oils import duty of 2.5 percent
which is aimed at curbing imports and protecting local refiners.
    Brent crude oil slipped below $112 on Monday, ending a
three-day rally as economic worries and concerns about
oversupply offset fears of unrest in North Africa. 
    In competing vegetable oil markets, the most active May
soybean oil contract on the Dalian Commodity Exchange
closed 0.9 percent higher. The U.S. Chicago Board of Trade is
closed for the Martin Luther King Jr. holiday.    
  Palm, soy and crude oil prices at 1004 GMT
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      FEB3    2370   +12.00    2359    2375     218
  MY PALM OIL      MAR3    2400   +17.00    2387    2408    3218
  MY PALM OIL      APR3    2420   +20.00    2404    2428   15935
  CHINA PALM OLEIN MAY3    6752   +52.00    6726    6778  301050
  CHINA SOYOIL     SEP3    8846  +118.00    8782    8866  491974
  CBOT SOY OIL     MAR3   51.68    +0.00    0.00    0.00       0
  NYMEX CRUDE      FEB3   95.20    -0.36   95.05   95.36    2667
  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=3.03 ringgit)

 (Editing by Miral Fahmy)
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