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VEGOILS-Palm jumps to over 2-week high on gains in related edible oils
July 3, 2017 / 5:42 AM / 3 months ago

VEGOILS-Palm jumps to over 2-week high on gains in related edible oils

    * Palm up 1.5 pct at noon, strongest gains in over 2 weeks
    * Market gains seen unsustainable as export demand
weak-trader

    By Emily Chow
    KUALA LUMPUR, July 3 (Reuters) - Malaysian palm oil futures
jumped in early trade on Monday tracking strong gains in soyoil
on the Chicago Board of Trade (CBOT) and related edible oils on
China's Dalian Commodity Exchange. 
    The benchmark palm oil contract for September delivery
 on the Bursa Malaysia Derivatives Exchange was up 1.5
percent at 2,496 ringgit ($581.07) a tonne at the midday break,
its strongest gain in over two weeks.
    It earlier rose to an intraday peak of 2,504 ringgit, its
highest level since June 19. Traded volumes stood at 18,160 lots
of 25 tonnes each.
    "The market is up on strong gains in soyoil," said a Kuala
Lumpur-based futures trader, referring to palm's rival oilseed
on the CBOT.
    Gains in soyoil and refined bleached and deodorized palm
olein on China's Dalian exchange were also supportive of palm
oil, he added.     
    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 CBOT rose 0.8 percent on Monday, after
the U.S. Department of Agriculture reported lower-than-expected
estimates for plantings and soybean stocks.
    In other related oils, the September soybean oil on the
Dalian Commodity Exchange was up as much as 1.4
percent, while the September palm olein contract rose
1.3 percent. 
    Gains however are not likely to sustain as exports remain
weak after the Ramadan and Eid-Al-Fitr festivities, said another
trader.
    Consumption of palm oil for cooking purposes is higher
during Ramadan, which sees Muslims break day-long fasts with
communal feasting, and also for the Eid celebrations. 
    Demand typically slows after Ramadan, as buyers stock up on
palm oil supplies a month or two ahead of the festivities.
               
    Palm, soy and crude oil prices at 0522 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JUL7     2626  +30.00    2622    2634     156
 MY PALM OIL       AUG7     2536  +39.00    2524    2540    1893
 MY PALM OIL       SEP7     2496  +37.00    2487    2504    8969
 CHINA PALM OLEIN  SEP7     5352  +66.00    5266    5400  350136
 CHINA SOYOIL      SEP7     6016  +82.00    5926    6094  391980
 CBOT SOY OIL      AUG7     33.3   +0.22   33.04    33.8    4324
 INDIA PALM OIL    JUL7   484.10   +3.90  482.00   485.4     375
 INDIA SOYOIL      JUL7    644.9   +4.55   642.5  646.75    6570
 NYMEX CRUDE       AUG7    46.19   +0.15   46.15   46.38   27676
 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 = 4.2955 ringgit)
($1 = 64.6700 Indian rupees)
($1 = 6.7845 Chinese yuan)
   

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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