VEGOILS
* Prices fall to 2,594 rgt in early trade, lowest since Dec. 23 * Palm oil to test support at 2,605 ringgit -technicals * Market players take up positions for 2014 -trader By Anuradha Raghu KUALA LUMPUR, Jan 6 (Reuters) - Malaysian palm oil futures slipped to a two-week low on Monday as forecasts of bumper supplies from the world's top palm producers continued to weigh on investor sentiment, while weak competing overseas markets put pressure on prices. Indonesia and Malaysia -- which together account for nearly all of the world's palm oil supply -- expect their palm production to climb in 2014, fanning fears that their supply may outstrip food and fuel demand. Indonesia said its 2013 palm oil output likely grew to 24.4 million tonnes and could rise further to 28 million tonnes in 2014, while No. 2 producer Malaysia expects to hit a record 19.4 million tonnes in 2013 and inch up to 19.5 million tonnes this year. Despite the bearish forecasts, traders said prices would likely balance out in the coming weeks after market players are done taking positions for the year ahead. 'It's the first day of 'real' trading. For a lot of traders, it's about starting up their positions again after closing books in 2013,' said a trader with a foreign commodities brokerage in Malaysia. 'There's some manoeuvring around -- the first few days is not a good indication of where the market is going. We have to let things settle down first and let everybody get into the groove,' the trader added. By the midday break, the benchmark March contract on the Bursa Malaysia Derivatives Exchange had inched down 1.7 percent to 2,594 ringgit ($788) per tonne, the lowest level since Dec. 23. Total traded volume stood at 20,360 lots of 25 tonnes, almost double the usual 12,500 lots. Technicals showed the next support for Malaysian palm oil will be at 2,605 ringgit, but a break below will open the way towards 2,589 ringgit, the 61.8 percent retracement, Reuters market analyst Wang Tao said. Prospects of higher production of competing oilseeds have dragged on U.S. and China soy markets tracked by palm oil. Larger soybean crops would mean more volumes to be crushed into soyoil, adding to global stockpiles. The U.S. soyoil contract for March fell 0.3 percent in early Asian trade on Monday, while the most active May soybean oil contract on the Dalian Commodities Exchange inched down 1.7 percent. In other markets, Brent crude edged up over $107 a barrel on Monday, bouncing back from its biggest weekly fall in six months, but the restart of a key Libyan oil field could limit further gains. Palm, soy and crude oil prices at 0548 GMT Contract Month Last Change Low High Volume MY PALM OIL JAN4 2560 -46.00 2560 2575 43 MY PALM OIL FEB4 2581 -49.00 2581 2613 3322 MY PALM OIL MAR4 2594 -46.00 2594 2629 10739 CHINA PALM OLEIN MAY4 5966 -112.00 5958 6062 468552 CHINA SOYOIL MAY4 6724 -120.00 6710 6810 434730 CBOT SOY OIL MAR4 38.49 -0.11 38.48 38.68 1770 NYMEX CRUDE FEB4 94.08 +0.12 93.91 94.29 5821 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil and RBD palm olein in Chinese yuan per tonne Crude in U.S. dollars per barrel ($1=3.29 Malaysian ringgit) (Editing by Sunil Nair) 
Congress party and the upstart Aam Aadmi Party (AAP) entered an 'unholy alliance' to share power in Delhi following state elections in the national capital, the chief ministerial candidate of the Bharatiya Janata Party (BJP) said in an interview on Dec. 31. Full Article
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