VEGOILS-Palm surges more than 2%, logs weekly gain

(Updates for market close) KUALA LUMPUR, Jan 10 (Reuters) - Malaysian palm oil futures ended more than 2% higher on Friday, bouncing back to log a weekly gain, tracking stronger Chicago soyoil prices. The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 97 ringgit, or 2.26%, to 4,393 ringgit ($977.74) a metric ton at the close. The contract gained 0.57% this week. "Crude palm oil futures were seen trading higher on the back of a strong recovery in overnight Chicago soyoil and during Asian hours today," said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group. Bagani, however, said the expectations of a drop in Indonesian palm oil reference price for February, uncertainty over the success of Indonesia's B40 biodiesel mandate and lacklusture Dalian palm olein futures capped the gains. Dalian's most-active soyoil contract DBYcv1 rose 0.88%, while its palm oil contract DCPcv1 gained 0.21%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 3.23%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Malaysia's palm oil stocks declined for a third consecutive month, falling 6.91% to 1.71 million metric tons at the end of December, while crude palm oil production fell 8.3% and exports plunged 9.97%, data from the Malaysian Palm Oil Board showed on Friday. Cargo surveyors estimated that Malaysian palm oil exports fell between 21.4% and 26.8% during the Jan. 1-10 period. Oil prices rose and were on track for a third straight week of gains as traders focused on potential supply disruptions from sanctions, while icy conditions in parts of the United States and Europe are expected to drive up fuel demand. O/R Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The Malaysian ringgit MYR= , palm's currency of trade, strengthened 0.16% against the dollar, making the commodity more expensive for buyers holding foreign currencies. ($1 = 4.4930 ringgit) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ cpo https://tmsnrt.rs/427uxCQ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ashley Tang; Editing by Varun H K and Eileen Soreng) (([email protected];)) ((For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01 . * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in 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 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E ))