VEGOILS-Palm in line to snap 3-day losing streak on strong crude oil

In this article:

* Longer term fundamentals supportive of palm - trader

* Palm oil may bounce towards 2,285 rgt/T range - techs

By Emily Chow

KUALA LUMPUR, Feb 13 (Reuters) - Malaysian palm oil futures

rose on Wednesday, in line to snap three sessions of declines,

supported by strength in crude oil prices.

The benchmark palm oil contract for April delivery

on the Bursa Malaysia Derivatives Exchange rose 0.6 percent to

2,267 ringgit ($557.96) a tonne at the midday break.

Palm had risen to a seven-month high last week before

falling to a three-week low in its previous session.

Trading volumes stood at 7,477 lots of 25 tonnes each at

noon. (1FCPO-TOT)

"The market is up due to a rise in crude oil prices last

night," said a Kuala Lumpur-based trader, adding that palm's

longer-term outlook was also supportive of the market.

"Production should drop at least 15 percent in February and

while exports will also fall, the decline won't be that sharp."

Output of palm oil, the world's most widely used edible oil,

typically declines during the first quarter of the year in line

with seasonal trend.

Exports of Malaysian palm oil products during Feb. 1-10 fell

11.2-15.8 percent from Jan. 1-10, according to cargo surveyors

AmSpec Agri Malaysia, Intertek Testing Services and Societe

Generale de Surveillance.

In other related oils, the Chicago March soybean oil

contract edged up 0.1 percent, while the May contract on

the Dalian Commodity Exchange fell 0.1 percent.

The Dalian January palm oil contract was up 0.2

percent.

Palm oil prices are affected by movements in soyoil rates,

as they compete for a share in the global vegetable oil market.

Palm oil may bounce towards 2,285 ringgit per tonne, as it

has found a support at 2,249 ringgit, said Wang Tao, a Reuters

market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 0454 GMT

Contract Month Last Change Low High Volume

MY PALM OIL FEB9 0 +0.00 0 0 0

MY PALM OIL MAR9 2226 +13.00 2214 2226 471

MY PALM OIL APR9 2267 +13.00 2255 2268 3250

CHINA PALM OLEIN MAY9 4768 +10.00 4760 4784 202360

CHINA SOYOIL MAY9 5708 -8.00 5692 5726 177686

CBOT SOY OIL MAR9 30.37 +0.04 30.27 30.39 2537

INDIA PALM OIL FEB9 560.10 -1.80 559.70 562.5 78

INDIA SOYOIL FEB9 773 -0.65 773 773.9 40

NYMEX CRUDE MAR9 53.61 +0.51 53.32 53.75 27439

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 4.0630 ringgit)

($1 = 70.4760 Indian rupees)

($1 = 6.7541 Chinese yuan)

(Reporting by Emily Chow; Editing by Shreejay Sinha)

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