October 2, 2017 / 5:55 AM / 2 months ago

VEGOILS-Palm edges up on demand, but trade seen subdued

    * Market to trade range bound as China, India on public
holidays
    * Weaker ringgit seen supporting palm - Trader
    * Palm may fall to 2,651 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Oct 2 (Reuters) - Malaysian palm oil futures
rose slightly in early trade on Monday, supported by demand and
a weaker ringgit, although public holidays in China and
India, the top two buyers of the tropical oil, kept trade
subdued.
    Palm oil shipments from Malaysia for the full month of
September rose 10.4 percent from August, according to data from
cargo surveyor Intertek Testing Services on Saturday.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.2
percent at 2,700 ringgit ($638.45) a tonne at the midday break,
in line for the first gain in four sessions. 
    Traded volumes stood at 14,298 lots of 25 tonnes each at the
midday break on Monday.
    "It looks like demand is supporting the market," said a
Kuala Lumpur based futures trader. 
    Palm prices could decline "mirroring listless movement in
rival oilseeds," said a second trader, although a weaker
Malaysian ringgit may cushion any selling. Price moves were
likely to be limited, he added.
    A weaker ringgit, palm's traded currency, typically supports
the tropical oil by making it cheaper for buyers holding foreign
currencies. 
    The ringgit weakened 0.2 percent around noon on Monday at
4.2290 against the dollar.
    Palm oil prices are affected by the performance of related
edible oils such as soy, as they compete for a share of the
global vegetable oils market.
    The December soybean oil contract on the Chicago
Board of Trade was down 0.2 percent. China's Dalian Commodity
Exchange is closed for a national public holiday. 
    Palm oil may break a support at 2,694 ringgit per tonne and
fall more to the next support at 2,651 ringgit, according to
Wang Tao, a Reuters market analyst for commodities and energy
technicals.
    
 Palm, soy and crude oil prices at 0522 GMT
 Contract           Month    Last  Change     Low   High  Volume
 MY PALM OIL        OCT7     2725   +6.00    2710   2725     185
 MY PALM OIL        NOV7     2698   +1.00    2690   2699     681
 MY PALM OIL        DEC7     2700   +5.00    2686   2703    6236
 CHINA PALM OLEIN   JAN8        0   +0.00       0      0       0
 CHINA SOYOIL       JAN8        0   +0.00       0      0       0
 CBOT SOY OIL       DEC7    32.74   +0.01    32.7  32.91    4074
 INDIA PALM OIL     OCT7   532.20   -4.10  528.40    538    2975
 INDIA SOYOIL       OCT7    661.7   -5.45   659.3  667.8   21250
 NYMEX CRUDE        NOV7    51.54   -0.13   51.45  51.71   15537
 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 = 4.2290 ringgit)
($1 = 65.3050 Indian rupees)
($1 = 6.6533 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Richard Pullin)
  
 
 

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