March 15, 2018 / 5:28 AM / 2 years ago

VEGOILS-Palm edges up on short-covering, outlook of higher demand

    * Palm hits one-week top of 2,447 rgt/tonne 
    * Palm up for fourth straight session
    * Palm may bounce further to 2,459 rgt/T - technicals

    By Emily Chow
    KUALA LUMPUR, March 15 (Reuters) - Malaysian palm oil
futures rose slightly in early trade on Thursday and hit a
one-week top on short-covering and expectation of higher demand
ahead of Ramadan. 
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was 0.1 percent
higher at 2,443 ringgit ($624.49) a tonne at the midday break,
after three consecutive sessions of gains. 
    It rose to its strongest level since March 7 at 2,447
ringgit earlier in the session, and has gained nearly 4 percent
since it hit a more than one-and-a-half-year low on Monday.
 
    Trading volumes stood at 26,333 lots of 25 tonnes each on
Thursday noon.
    "With current low prices, there's a window of opportunity
for buying," said a Kuala Lumpur-based trader.
    The market could also be up on expectation that demand will
improve ahead of the Ramadan fasting month, said another trader.
    The month of Ramadan begins in mid-May this year and sees
Muslims worldwide break day-long fasts with communal feasting,
incurring higher usage of palm oil for cooking purposes. 
    Buyers in regions such as the Middle East usually stock up
on palm oil about a month ahead of Ramadan. 
    In other related oils, the Chicago Board of Trade's May
soybean oil contract rose 0.3 percent, while the May
soybean oil on China's Dalian Commodity Exchange was
down 0.9 percent
    The Dalian May palm oil contract declined 0.5
percent.
    Palm oil prices are impacted by movements in rival edible
oils as they compete in the global vegetable oils market.
    Palm oil may bounce further to 2,459 ringgit per tonne,
according to Wang Tao, a Reuters market analyst for commodities
and energy technicals.
    
    Palm, soy and crude oil prices as of 0457 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       MAR8        0    +0.00       0      0       0
 MY PALM OIL       APR8     2451    +3.00    2425   2451     488
 MY PALM OIL       MAY8     2443    +3.00    2418   2447   11122
 CHINA PALM OLEIN  MAY8     5096   -24.00    5074   5126  135476
 CHINA SOYOIL      MAY8     5674   -50.00    5664   5728  161530
 CBOT SOY OIL      MAY8     31.8    +0.09   31.64  31.81    4876
 INDIA PALM OIL    MAR8   637.00    -0.80  636.40  638.7     120
 INDIA SOYOIL      MAR8      771    -1.50     770  771.2      90
 NYMEX CRUDE       APR8    61.06    +0.10   60.89  61.16   16924
  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 = 3.9120 ringgit)
($1 = 64.9175 Indian rupees)
($1 = 6.3118 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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