The Edge Markets (08/01/2018) - KUALA LUMPUR (Jan 8): Malaysian palm oil futures rebounded from early losses to rise over 1% in evening trade on Monday, as traders forecast improving demand in January and lower production in the coming months.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 1.2% to RM2,625 (US$657.07) a tonne at the close of trade. It earlier hit a daily high of RM2,631 a tonne, its strongest level since Nov. 24.

Trading volumes stood at 52,046 lots of 25 tonnes each at the end of the trading day.

"The market is anticipating better exports ahead of data releases this week," said a futures trader in Kuala Lumpur.

Another trader added that expectations of declining production also lent support to the market.

Malaysia had announced on Friday it would exempt crude palm oil export taxes for three months starting Jan. 8 to boost demand and lift prices.

Jan. 1-10 export data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance are scheduled for release on Wednesday.

Official data for December from the Malaysian Palm Oil Board is also scheduled for release on Wednesday. A Reuters poll showed that December end-stocks are forecast to have risen 5.1% to 2.69 million tonnes, its highest level in over two years.

In other related edible oils, the March soybean oil contract on the Chicago Board of Trade edged up 0.3%, while the May soybean oil on the Dalian Commodity Exchange was down 1.1%.

The Dalian January palm oil contract declined 1%.

Palm oil prices track the performance of other edible oils, as they compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices as of 1107 GMT

Contract                      Month     Last       Change     Low     High   Volume

MY PALM OIL              JAN8        2572      +20.00      2530     2572      160

MY PALM OIL              FEB8        2625      +20.00      2560     2629      2534

MY PALM OIL              MAR8       2627      +31.00      2562     2631      19987

CHINA PALM OLEIN   MAY8       5308      -54.00       5294     5354       221340

CHINA SOYOIL           MAY8       5756      -62.00       5740     5822       325582

CBOT SOY OIL           MAR8        33.87      -0.02       33.58     33.88     7106

INDIA PALM OIL          JAN8        564.00    +3.30      555.60   564.3      1637

INDIA SOYOIL             JAN8        741.5      +3.30      737.3      742        8520

NYMEX CRUDE           FEB8       61.80      +0.36      61.38     61.82      101664

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 = RM3.9950)

(US$1 = 63.4000 Indian rupees)

(US$1 = 6.4960 Chinese yuan)