RTRS:VEGOILS-Palm oil hits one-month high on U.S. data, weather concerns
* U.S. jobless claims data points to stronger recovery
* Malaysia weather office issues heavy rain warning
* Trading volume thin ahead of long weekend
(updates prices, quote)
By Chew Yee Kiat
SINGAPORE, Dec 23 (Reuters) - Malaysian crude palm oil
futures climbed to a near three-week high on Friday on
shortcovering ahead of the weekend that was driven by upbeat
U.S. data and prospects of lower output triggered by heavy rain
fall in parts of Malaysia.
New claims for unemployment benefit in the U.S. dropped to
their lowest in 3-1/2 years, bolstering views that the recovery
is gaining momentum and adding cheer to global financial
markets.
Despite closing higher for the past few days, palm oil has
lost nearly 17 percent this year and is on course for the first
annual decline since 2008 thanks to concerns over the euro zone
debt crisis stalling growth and commodity demand.
"The market has been compressed for too long at 2,890 to
3,030 ringgit. The intraday has been heavily overbought and I
don't think it can sustain this kind off rally," said a trader
with a local brokerage.
Benchmark March palm oil futures <0#FCPO:> settled up 2.4
percent on the Bursa Malaysia Derivatives Exchange to 3,170
ringgit ($1,000)per tonne. It earlier touched a high of 3,178
ringgit, a level last seen on Nov 23.
Traded volumes for palm oil futures were thin ahead of a
long Christmas weekend at 18,668 lots of 25 tonnes
each, compared to the usual 25,000 lots.
"It is still weather play and the market's tracking stronger
soyoil. The charts are also bullish as the market settled at
day's high for 4 days continuously," said another dealer with a
foreign commodities brokerage.
The Malaysian Meteorological Department has issued warning
of heavy rains that may cause floods over low-lying areas in key
oil palm growing states of Pahang, Johor, Sabah and Sarawak,
together accounting for almost 75 percent of Malaysia's palm oil
output.
Heavy rains may cause logistics disruption if they worsen as
floods hitting oil palm estates may cut access roads to
plantations.
But palm oil stocks may get a little breathing space as
exports from Malaysia are also falling, cargo surveyor data
showed this week.
Oil held around $108 a barrel on Friday, supported by fresh
signs of a strengthening U.S. economy and concern of potential
supply disruptions in Iran and Iraq.
U.S. soyoil for January delivery edged higher as
concern over dry weather hurting South American soy yields
supported the market.
The most active Sept 2012 soyoil contract on China's
Dalian commodity exchange gained 0.7 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JAN2 3160 +65.00 3125 3160 93
MY PALM OIL FEB2 3175 +75.00 3115 3182 3959
MY PALM OIL MAR2 3170 +73.00 3112 3178 10775
CHINA PALM OLEIN MAY2 7936 +66.00 7900 7956 79670
CHINA SOYOIL SEP2 8930 +62.00 8892 8948 255240
CBOT SOY OIL JAN2 50.64 +0.19 50.14 50.64 2486
NYMEX CRUDE FEB2 99.77 +0.24 99.24 100.23 7944
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 = 3.1665 ringgit)
