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Wednesday, November 28, 2007
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Commodity News
Nov 28 2007 7:31AM
Malaysian palm oil futures to track lower crude oil

KUALA LUMPUR, Nov 28 (Reuters) - The following factors are likely to influence Malaysian palm oil futures on Wednesday.

CRUDE OIL

-- Oil fell more than 3 percent on Tuesday on expectations OPEC will boost supply and concerns U.S. economic problems will grind down demand growth.

Saudi Arabia's oil minister, Ali al-Naimi, said the kingdom had already increased production beyond targets set under an OPEC deal to boost output from Nov. 1.

U.S. oil <CLc1> tumbled $3.28 to settle at $94.42 a barrel, off earlier lows of $94.21. It extended losses to $93.99 a barrel in early Wednesday trade.

SOYOIL

-- Soybean futures at the Chicago Board of Trade slid Tuesday on spillover selling from crude oil and a firmer dollar, traders said.

CBOT soyoil closed 0.39 to 0.75 cent lower, with December <BOZ7> 0.39 cent weaker at 46.30 cents. It was down to 46.09 cents in electronic trade during Asian hours on Wednesday.

-- High international soybean prices often translate into aggressive expansion on Brazil's soybean frontiers, but the 34-year high that Chicago soy futures hit on Monday has come too late to affect this year's planting. [ID:nN27478336]

-- China is likely to continue its soybean purchasing surge and more sales are likely to be won by the U.S., Hamburg-based oilseeds analysts Oil World forecasts. [ID:nL264741]

PALM OIL

-- Malaysian crude palm oil futures dropped 1.7 percent on Tuesday, drawing back from a record high hit the day before as players seized the opportunity to sell after crude and soyoil markets declined in Asian trade.

The market fell past the 3,000 ringgit level on talk that exports will take a huge hit due to the red hot palm prices, which are up nearly 50 percent this year.

-- Exports of Malaysian palm oil products for November 1-25 rose 0.7 percent to 1,126,683 tonnes from 1,119,011 tonnes shipped between October 1-25, cargo surveyor Intertek Testing Services said on Monday.

Another cargo surveyor, Societe General de Surveillance, said exports in the same period fell 0.4 percent to 1,107,615 tonnes. (Reporting by Naveen Thukral; editing by Kim Coghill) (([email protected]; +603-2333-8035; Reuters messaging: [email protected]; [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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