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VEGOILS-Palm hits 1-wk high on technical buying
October 4, 2017 / 6:27 AM / in 2 months

VEGOILS-Palm hits 1-wk high on technical buying

    * Sept end-stocks not seen increasing by much - trader
    * Palm may retest support at 2,651 rgt/tonne - technicals

    By Emily Chow
    KUALA LUMPUR, Oct 4 (Reuters) - Malaysian palm oil futures
hit one-week highs on Wednesday, supported by technical buying
and expectations of a slight rise in end-September inventory
levels. 
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 1
percent at 2,709 ringgit ($641.26) a tonne at the midday break,
heading for a second straight gain after four consecutive losing
sessions.
    Earlier in the session, it rose to its strongest level since
Sept. 28 at 2,711 ringgit.
    Palm, which had shed 1.5 percent last week in its second
straight weekly decline, has gained 0.5 percent so far this
week. 
    Traded volumes stood at 17,641 lots of 25 tonnes each at
noon on Wednesday.
    "The market is seeing some technical buying as profit-taking
had happened earlier," said a futures trader from Kuala Lumpur. 
    "Stocks are also not expected to increase by much, and there
is some buying that we see from India and Africa. People did not
buy too much last month when prices were high, so now they are
buying to maintain stock levels," he said.    
    Palm oil shipments from Malaysia, the world's second largest
producer of the tropical oil, rose about 10 percent for the full
month of September, compared with the previous month, showed
data from cargo surveyors.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade was up 0.1
percent. China's Dalian Commodity Exchange is closed for a
national public holiday.
    Palm oil prices are affected by the performance of related
edible oils including soy, as they compete for a share of the
global vegetable oils market.
    Palm oil may retest a support at 2,651 ringgit per tonne,
according to Reuters market analyst for commodities and energy
technicals Wang Tao.
        
 Palm, soy and crude oil prices at 0555 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       OCT7     2721  +17.00    2720   2722      360
 MY PALM OIL       NOV7     2711  +25.00    2692   2713      314
 MY PALM OIL       DEC7     2709  +26.00    2688   2711     8586
 CHINA PALM OLEIN  JAN8        0   +0.00       0      0        0
 CHINA SOYOIL      JAN8        0   +0.00       0      0        0
 CBOT SOY OIL      DEC7    32.78   +0.05   32.69  32.83     4190
 INDIA PALM OIL    OCT7   538.60   +3.40  537.90  539.5      144
 INDIA SOYOIL      OCT7   662.75   +2.10   662.1  663.5     2180
 NYMEX CRUDE       NOV7    50.12   -0.30   49.91  50.19    22474
 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 = 4.2245 ringgit)
($1 = 65.3450 Indian rupees)
($1 = 6.6533 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 

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