October 17, 2017 / 6:22 AM / 5 months ago

VEGOILS-Palm hits 3-week high on stronger rival oils, technical gains

    * Palm climbs to intraday high of 2,768 rgt/T
    * Market in line for fifth day of gains
    * Palm still targets 2,782-2,812 rgt/T range - Technicals

    By Emily Chow
    KUALA LUMPUR, Oct 17 (Reuters) - Malaysian palm oil futures
climbed to their highest in near three weeks on Tuesday, buoyed
by overnight strength in related edible oils and on technical
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange climbed 0.2
percent to 2,767 ringgit ($655.30) a tonne at the midday break,
poised for a fifth straight session of gains. Earlier in the
session, it touched 2,768 ringgit, its strongest since Sept. 27.
    Traded volumes stood at 24,371 lots of 25 tonnes each at the
midday break.
    "Palm is up as the external market remains firm," said a
futures trader from Kuala Lumpur, referring to soyoil on the
Chicago Board of Trade. 
    "However, the market is awaiting Dalian to dictate this
afternoon's crude palm oil market," he added.
    Another trader said palm futures were underpinned by
technical gains, but this rally could be short-lived as the
tropical oil's fundamentals looked bearish. 
    "We will have an increase in production and growth exports
may reduce, and it could hit 2 million tonnes in stocks by
December," he said. 
    Malaysia's palm oil stocks at end-September climbed 4
percent to 2.02 million tonnes from the previous month, while
production in September fell 1.7 percent from August to 1.78
million tonnes, according to data from industry regulator
Malaysian Palm Oil Board last week.
    Exports rose 1.8 percent to 1.52 million tonnes.
    However, production in October is seen rising on-month due
to the higher number of working days. 
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade gained as much as
0.3 percent, while the January soybean oil contract on China's
Dalian Commodity Exchange climbed up to 0.4 percent.
    The January palm olein contract was up by 0.3
    Palm's prices are impacted by movements of related oils as
they compete for a share in the global vegetable oils market.
    Palm still targets a range of 2,782-2,812 ringgit per tonne,
according to Wang Tao, a Reuters market analyst for commodities
and energy technicals.
 Palm, soy and crude oil prices at 0552 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       NOV7     2756   +1.00    2749    2758     512
 MY PALM OIL       DEC7     2757   +3.00    2744    2759    3523
 MY PALM OIL       JAN8     2767   +5.00    2753    2768   10280
 CHINA PALM OLEIN  JAN8     5620  +18.00    5574    5646  263696
 CHINA SOYOIL      JAN8     6104   +4.00    6074    6128  202544
 CBOT SOY OIL      DEC7    33.69   +0.10   33.61    33.7    2005
 INDIA PALM OIL    OCT7   538.80   +1.40  537.10   539.1      59
 INDIA SOYOIL      NOV7    671.5   +2.15   669.4  672.75    3650
 NYMEX CRUDE       NOV7    51.76   -0.11   51.74   51.95    9553
 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 = 4.2225 ringgit)
($1 = 64.9050 Indian rupees)
($1 = 6.6100 Chinese yuan)

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
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