VEGOILS-Palm recoups losses on strong rival oils, Dec inventory outlook
Recasts with midday prices, details and trader comments
JAKARTA, Jan 6 (Reuters) - Malaysian palm oil futures recouped early losses on Friday, tracking stronger U.S. edible oil and energy prices and as polls forecasting smaller December inventory lifted sentiment, although the contract was poised for a weekly drop.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 0.24% to 4,100 ringgit ($933.30) per tonne by the midday break. Palm oil lost 3.85% over the past two days.
The contract lost 1.77% so far this week.
Palm was also tracking gains in Chicago Board of Trade (CBOT) and crude oil, a Kuala Lumpur-based trader said.
"Moreover, some covering ahead of week MPOB (data release)," the trader added.
Malaysia's palm oilestimated to shrink 5.3% to 2.17 million tonnes from prior month, their lowest levels in four months as production and exports slowed, a Reuters survey showed.
Production declined 3% to 1.63 million tonnes, while exports fell 1% to 1.5 million tonnes, according to the poll.
Soyoil prices on the CBOT BOc2 were up 0.67%, while crude oil rose as much as $1 on Friday on hopes of a China demand boost and after data showed lower fuel inventories in the United States following a winter storm that hit during the year end. O/R
Softer prices of rival oils on the Dalian exchange, however, limited gains seen in the palm oil contract. Dalian's most-active soyoil contract DBYv1 fell 0.21% while its palm oil contract DCPv1 slipped 0.17%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may slide a bit more into a range of 3,997 ringgit to 4,022 ringgit per tonne, as it has broken a support at 4,109 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.3930 ringgit)
(Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Sherry Jacob-Phillips)
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