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2 months ago
VEGOILS-Palm hits near 2-week high on stronger overnight soyoil
June 30, 2017 / 5:22 AM / 2 months ago

VEGOILS-Palm hits near 2-week high on stronger overnight soyoil

    * Palm down 20 pct since start of the year
    * Market supported by weaker ringgit, seen declining in
later trade -Trader
    * June demand down nearly 9 pct on-month -ITS

    By Emily Chow
    KUALA LUMPUR, June 30 (Reuters) - Malaysian palm oil futures
rose to their highest in nearly two weeks on Friday, in line for
a second consecutive session of gains, tracking overnight soyoil
on the Chicago Board of Trade (CBOT).
    The gains were also supported by a slightly weaker ringgit
, palm's currency of trade, which typically makes the
tropical oil cheaper for foreign currency holders. 
    The ringgit, currently trading at one-month lows, was down
0.01 percent to 4.2925 against the dollar. 
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.3
percent at 2,477 ringgit ($577.05) a tonne at the midday break.
It earlier rose to 2,482 ringgit, its highest level since June
20.
    However, palm is down 6.7 percent in April-June from the
preceding quarter, and has shed a fifth of its value since the
start of the year.
    Traded volumes stood at 9,137 lots of 25 tonnes each.
    "The market's gains are propelled by firm soyoil... as well
as the ringgit," said a futures trader from Kuala Lumpur,
referring to overnight soyoil gains on the CBOT. 
    The gains are not expected to last and the market would
likely fall in the second half of trade, he added, as export
demand remains weak and production is seen rising in coming
weeks. 
    Palm oil shipments from Malaysia fell 8.9 percent for the
full month of June from the previous month, according to data
from cargo surveyor Intertek Testing Services on Friday.

    Demand typically slows after the Muslim fasting month of
Ramadan, which leads to higher palm oil usage for cooking during
the Eid festivities.
    Buyers typically stock up on palm oil supplies one to two
months ahead of Ramadan.
    Palm oil prices are also impacted by movements in soyoil, as
the compete for a share in the global edible oils market.
Soybean oil on the Chicago Board of Trade rose nearly 1
percent in its previous session, before easing 0.03 percent on
Friday.     
    In other related oils, the September soybean oil on the
Dalian Commodity Exchange fell 0.1 percent, while the
September palm olein contract was rose 0.7 percent. 
               
    Palm, soy and crude oil prices at 0458 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JUL7     2620   +3.00    2617    2625     606
 MY PALM OIL       AUG7     2513   +7.00    2508    2519    1621
 MY PALM OIL       SEP7     2477   +8.00    2470    2482    3792
 CHINA PALM OLEIN  SEP7     5286  +36.00    5250    5312  325244
 CHINA SOYOIL      SEP7     5934   -8.00    5896    5974  349902
 CBOT SOY OIL      JUL7    32.41   -0.01    32.3   32.46    1312
 INDIA PALM OIL    JUN7   490.50   +0.10  490.10   490.5      27
 INDIA SOYOIL      JUL7    636.5   -0.70  636.25  637.45     860
 NYMEX CRUDE       AUG7    45.20   +0.27   44.88   45.33   32148
 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
 India soy oil in Indian rupee per 10 kg
 Crude in U.S. dollars per barrel
 
($1 = 4.2925 ringgit)
($1 = 64.6400 Indian rupees)
($1 = 6.7666 Chinese yuan)    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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