October 24, 2017 / 5:39 AM / 25 days ago

VEGOILS-Palm hits 5-wk high on gains in rival oils

    * Expectation of stronger exports also helps - trader
    * Palm extends gains into third session
    * Palm may test resistance at 2,812 rgt/tonne - techs

    By Tavleen Tarrant
    KUALA LUMPUR, Oct 24 (Reuters) - Malaysian palm oil futures
extended gains into a third session on Tuesday and hit a
five-week high, tracking gains in rival edible oils.
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.5
percent at 2,800 ringgit ($661.55) a tonne by midday after
rising as much as 0.8 percent to 2,808 ringgit, their highest
since Sept. 19, earlier in the session.
    Traded volumes stood at 20,588 lots of 25 tonnes each at the
midday break.
    The uptick in rival edible oils continued to support palm
prices, said traders.
    Palm prices are impacted by the movements of related oils as
they compete for a share in the global vegetable oils market.
    "Last night, soybean oil on the CBOT was up and today, oils
on the Dalian commodity exchange are up, but now the market is
off highs," said a Kuala Lumpur-based futures trader.
    The December soybean oil contract on the Chicago
Board of Trade (CBOT) closed 1.4 percent higher on Monday,
extending gains in to a third session, after the U.S.
Environmental Protection Agency backed off from a series of
proposed changes to the nation's biofuels policy.
    The January soybean oil contract on the Dalian Commodity
Exchange gained 0.4 percent on Tuesday, while the
January palm olein contract rose 1.1 percent. 
    "It looks like the market is reacting on expectation of
stronger exports in the coming weeks," said another trader.
    Cargo surveyor Intertek Testing Services released data on 
Friday that showed exports of Malaysian palm oil products during
Oct. 1-20 rose 11.6 percent to 951,339 tonnes from 852,206
tonnes shipped a month earlier.
    Meanwhile, Wang Tao, a Reuters market analyst for
commodities and energy technicals, said palm oil may test a
resistance at 2,812 ringgit per tonne, a break above which could
open the way towards the Sept. 14 high of 2,860
ringgit.
    
 Palm, soy and crude oil prices at 0443 GMT
    
 Contract      Month     Last  Change     Low   High  Volume
 MY PALM OIL  NOV7       2773   +6.00    2773   2780     135
 MY PALM OIL  DEC7       2784  +10.00    2777   2794    2273
 MY PALM OIL  JAN8       2800  +13.00    2790   2808    9752
 CHINA PALM   JAN8       5686  +60.00    5654   5706  299016
 OLEIN                                                
 CHINA        JAN8       6082  +22.00    6054   6096  193296
 SOYOIL                                               
 CBOT SOY     DEC7      34.59   -0.04   34.48  34.65    4239
 OIL                                                  
 INDIA PALM   OCT7     543.00   +1.50  542.80  543.5      74
 OIL                                                  
 INDIA        NOV7        675   +1.10   674.5  675.4     940
 SOYOIL                                               
 NYMEX CRUDE  DEC7      51.98   +0.08   51.87  52.04    8927
 
 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 = 4.2325 Malaysian ringgit)
($1 = 64.9150 Indian rupees)
($1 = 6.6250 Chinese yuan)

 (Editing by Subhranshu Sahu)
  
 
 

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