VEGOILS-Palm slips on weaker rival oils, expectations of higher Jan stockpiles

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VEGOILS-Palm slips on weaker rival oils, expectations of higher Jan stockpiles

JAKARTA, Feb 8 (Reuters)Malaysian palm oil futures fell on Tuesday, as rival oils traded lower, while forecast of a marginal increase in January stockpiles also weighed on sentiment.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange traded 0.29% lower at 5,520 ringgit ($1,319.31) a tonne by 0238 GMT.

It fell 1.4% on Monday but regained some ground in overnight trade.

FUNDAMENTALS

* Malaysia’s palm oil stockpile at the end of January likely stayed flat, as both production and exports in the world’s second-largest producer plunged to an 11-month low, a Reuters survey showed on Monday.

* Indonesia, the world’s top palm oil shipper, has issued export permits for a combined 310,000 tonnes of crude palm oil and 18,178 tonnes of olein for six companies, a Trade Ministry senior official told Reuters.

* Dalian’s most-active soyoil contract DBYv1 fell 1.59%, while its palm oil contract for May delivery DCPv1 lost 1.31%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.4%.

* 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 retest a support at 5,484 ringgit per tonne, a break below which could cause a fall into 5,366-5,425 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Chicago soybeans edged lower, as the market eased from an eight-month high reached in the previous session, although losses were limited by concerns over dry weather conditions in South America. GRA/

* Oil prices settled lower on Monday on faint signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of U.S. sanctions on Iranian oil sales. O/R

* Wall Street shares finished broadly lower on Monday, while European stocks rose following five straight weeks of declines and European bond yields soared on speculation of monetary tightening. MKTS/GLOB

DATA/EVENTS

1330 US International Trade Dec

($1 = 4.1840 ringgit)

(Reporting by Fransiska Nangoy; Editing by Rashmi Aich)

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