The Edge Markets (25/10/2017) - KUALA LUMPUR (Oct 25): Malaysian palm oil futures rebounded on Wednesday, supported by gains in overseas soyoil prices and a rise in October exports.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was up 0.4% at RM2,787 (US$658.55) a tonne by midday.

Traded volumes stood at 28,005 lots of 25 tonnes each at the midday break.

"The rise in soyoils is supporting palm prices," said a Kuala Lumpur-based futures trader.

Movements in related oils impact palm prices as they compete for a share in the global vegetable oils market.

The December soybean oil contract on the Chicago Board of Trade (CBOT) rose by 0.3% on Wednesday.

The January soybean oil contract on the Dalian Commodity Exchange gained 0.4% on Wednesday. However, the January palm olein contract declined by 0.07%.

Although the Malaysian Palm Oil Association (MPOA) released higher production figures, the trader said the market was not stirred as it was already factored in.

"The MPOA data release for Oct. 1-20 shows production is up by 10.5%, which is expected and therefore, not affecting the market. This sentiment is supported by steady exports," said the trader.

Cargo surveyor Intertek Testing Services said on Wednesday that exports of Malaysian palm oil products for Oct. 1-25 rose 8.6% to 1,177,939 tonnes from 1,085,116 tonnes shipped during Sept. 1-25.

Another trader added that market sentiment may be partly lifted by weather concerns that would negatively affect palm production at the end of this year.

Palm, soy and crude oil prices at 0516 GMT

Contract                    Month       Last        Change       Low        High        Volume

MY PALM OIL         NOV7       2763       +11.00         2752       2770         416

MY PALM OIL        DEC7      2773        +9.00        2749       2773           886

MY PALM OIL      JAN8       2787        +10.00     2761        2788           13738

CHINA PALM     JAN8      5676         -4.00         5652       5716            267834
OLEIN

CHINA SOYOIL   JAN8      6098        +24.00     6056       6100            189584

CBOT SOY OIL   DEC7     34.46       +0.12        34.35      34.53           8938

INDIA PALM OIL   OCT7     541.30     +0.10        541.30    542.5           27

INDIA SOYOIL      NOV7     673.4      -0.25           672.8      675              1520

NYMEX CRUDE   DEC7     52.41       -0.06          52.39      52.57            13763

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.2320)
(US$1 = 65.1300 Indian rupees)
(US$1 = 6.6405 Chinese yuan renminbi)