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Friday, December 14, 2007
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Commodity News
Dec 13 2007 7:48AM
Malaysian palm to follow crude markets, weather eyed

KUALA LUMPUR, Dec 13 (Reuters) - The following factors are likely to influence Malaysian palm oil futures on Thursday.

CRUDE OIL

-- Oil jumped nearly 5 percent to over $94 a barrel Wednesday as the U.S. Federal Reserve and other major central banks moved to ease credit tensions and U.S. crude stocks fell to the lowest point since early 2005.

U.S. oil <CLc1> settled up $4.37 higher at $94.39 a barrel while London Brent crude <LCOc1> gained $4.03 to $94.02.

PALM OIL

-- Malaysian crude palm oil futures were steady on Wednesday, with the market torn between some investors cashing in on slightly weaker crude and soyoil prices and others taking up positions on wet weather worries.

The benchmark February contract <KPOG8> on the Bursa Malaysia Derivatives Exchange settled down 3 ringgit at 2,877 ringgit ($868) a tonne.

-- Floods in Malaysia have killed 12 people and left more than 20,000 homeless, and more rain is expected, which could push up food and palm oil prices in one of the world's top growers.

The monsoon rains have cut off roads in several states including Kelantan and Terengganu in the east and Johor in the south, local media reported. The Meteorological Department has forecast more heavy rain. [ID:nKLR331752]

SOYOIL

-- Soybean futures at the Chicago Board of Trade reached a 34-year high in a spot contract for the fourth-straight session on Wednesday, as a rally in the stock market spilled over to Chicago commodities, traders said.

The products were also strong with soymeal hitting a three-year top in a spot month and soyoil lifted by a stronger crude oil market and talk of fresh Chinese purchases of South American soyoil.

The soyoil market ended 0.53 to 0.85 cent per lb, with December <BOZ7> up 0.67 cent at 46.25 cents per lb.

BIODIESEL

-- A new agreement will aim to strengthen cooperation between the United States and China, the world's top two oil consumers, in promoting the production and use of biofuels, U.S. officials said on Wednesday.

Officials from the two countries signed an agreement during high-level economic talks in Beijing this week to accelerate growing use of biofuels like ethanol and biodiesel, which could help wean the countries of their dependence on fossil fuels.[ID:nN12649877]

Soy and crude oil prices at 0210 GMT Contract Last Net chg Settle Open High Low Volume CBOT soyoil* 46.25 + 0.67 46.25 N/A 0.00 0.00 N/A NYMEX crude** 93.79 -0.60 94.39 N/A 94.21 93.74 N/A

* Soy oil in U.S. cents per pound ** Crude in USD per barrel (Reporting by Niluksi Koswanage; Editing by Valerie Lee)

(([email protected]; +603 2333 8035; Reuters Messaging: [email protected])) * For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on <OILS/MY01> or type OILS/MY01 and press "enter". * To view freight rates from Peninsula Malaysia/Sumatra to China/, India, Pakistan and Rotterdam, please key in <OILS/ASIA1> and <OILS/ASIA2> and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils -- <OILS/ASIA1><0#OILS-AS> Malaysian palm oil -- <OILS/MY01><0#PALMOIL-AS> Malaysian palm kernel oil -- <OILS/ASIA1><0#PALKOIL-AS> Malaysian palm oil exports -- <SGSPALM1> CBOT soyoil futures -- <0#BO:> CBOT soybean futures -- <0#S:> Indian oilseeds -- <INOIL> Indian solvent -- <SOLVENT01> Daily Indian soybean/meal report -- [SOYP/IN] Daily Indian soyoil report -- [OILSP/IN] Weekly Indian vegetable oils -- [OILS/IN] Dalian Commodity Exchange -- <DC/MENU> Dalian soyoil futures -- <0#DBY:> Dalian refined palm oil futures -- <0#DCP:> Zhengzhou rapeseed oil -- <0#CRO:> Singapore JADE palm oil -- <0#PO:> Kuala Lumpur palm oil futures -- <0#KPO:> European edible oil prices/trades -- [OILS/E] Keywords: MALAYSIA PALM/PREOPENER

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