VEGOILS-Palm rebounds on expectation of slowing monthly production

* Palm up after 4 straight sessions of losses

* Palm oil may bounce to 2,177 rgt/T – techs

* Palm has lost 6.5 pct so far in February

By Emily Chow

KUALA LUMPUR, Feb 28 (Reuters) – Malaysian palm oil futures rose on Thursday, recovering from four straight sessions of declines to a near two-month low in the previous session, on expectations of slowing monthly production.

The benchmark palm oil contract for May delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 0.8 percent at 2,149 ringgit ($528.14) a tonne at the midday break.

Palm had slumped 2.5 percent in intraday trade on Wednesday to 2,129 ringgit, its weakest level since Dec. 31.

The vegetable oil has declined 6.5 percent so far this month, in what could be its biggest fall since November 2017.

“The selloff was too deep yesterday,” said a Kuala Lumpur-based futures trader while explaining why palm prices trended upward in Thursday’s first-half trade.

“But I think it will recover fast, I’m hearing that February’s full month production will be down (from the previous month) by 7-10 percent.”

Palm oil output usually declines on a monthly basis in the first quarter of the year, but traders said February output could be higher than a year earlier.

Data from industry regulator the Malaysian Palm Oil Board showed production in January fell 3.9 percent on month to 1.74 million tonnes. The board is scheduled to release February data on March 11. MYPOMP-CPOTT

Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia reported on Thursday that exports in February declined 14.5-15.2 percent from the previous month. PALM/ITS PALM/AAM

In other related oils, the Chicago March soybean oil contract BOH9 was last up 0.2 percent.

The May soyoil contract on the Dalian Commodity Exchange DBYK9 gained 0.3 percent and the Dalian May palm oil contract DCPK9 was down 0.5 percent.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.

Palm oil may bounce to 2,177 ringgit per tonne, as it has stabilised around a support at 2,130 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. soy and crude oil prices at 0436 GMT Contract

Month

Last Change

Low

High Volume MY PALM OIL

MAR9

1940 +20.00

1932

1944

192 MY PALM OIL

APR9

2095 +14.00

2092

2107

2004 MY PALM OIL

MAY9

2149 +17.00

2139

2162

8045 CHINA PALM OLEIN MAY9

4560 -22.00

4522

4570 245918 CHINA SOYOIL

MAY9

5680 +16.00

5624

5708 255012 CBOT SOY OIL

MAR9

29.86 +0.06 29.86 29.86

1626 INDIA PALM OIL

FEB9 550.20 +0.10 549.80 550.4

96 INDIA SOYOIL

MAR9

757 +0.15

757 758.9

510 NYMEX CRUDE

APR9

56.91 -0.03 56.88 57.04 15972 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 = 4.0690 ringgit) ($1 = 71.1520 Indian rupees) ($1 = 6.6814 Chinese yuan)

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