January 9, 2018 / 5:42 AM / 14 days ago

VEGOILS-Palm hits near 7-week top on stronger demand outlook

    * Market up for third straight session
    * Weaker ringgit also lends support - trader
    * Palm oil may rise to 2,669 rgt - Technicals

    By Emily Chow
    KUALA LUMPUR, Jan 9 (Reuters) - Malaysian palm oil futures
extended gains into a third session on Tuesday and hit a near
seven-week top on expectation of stronger demand from overseas
markets following the suspension of export duty.
    A weaker ringgit also lent support to the market,
said traders. Weakness in the ringgit, palm's currency of trade,
typically makes the tropical oil cheaper for foreign buyers and
spurs demand.
    The Malaysian currency was 0.1 percent lower against the
dollar around Tuesday noon, down from a 16-month high hit in the
 previous session.
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at
2,628 ringgit ($657.33) a tonne at the midday break. Earlier in
the session, it rose to its strongest levels since Nov. 24 at
2,635 ringgit a tonne.
    Trading volumes stood at 18,190 lots of 25 tonnes each at
the midday break.
    "Players are buying on better exports outlook and are still
on the bullish side," said a Kuala Lumpur-based futures trader,
adding that it was not easy for the market to fall amid
duty-free exports.
    Malaysia said on Friday it would suspend export taxes on
crude palm oil for three months from Monday, in a bid to boost
demand and lift prices.
    Malaysian plantation company Felda Global Ventures Bhd said
on Tuesday it expects a 30-50 percent increase in its palm oil
export volumes to India, Pakistan, China and Europe following
the suspension of export duty.
    Cargo surveyors are expected to release Malaysian palm oil
shipment data for the Jan. 1-10 period after 0300 GMT  on
Wednesday.
    Palm oil may break a resistance at 2,645 ringgit per tonne,
and rise more to the next resistance at 2,669 ringgit, according
to Wang Tao, a Reuters market analyst for commodities and energy
technicals.
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade rose 0.2 percent, while
the May soybean oil on the Dalian Commodity Exchange was
up 0.1 percent.
    The Dalian January palm oil contract gained 0.5
percent. 
    Palm oil prices track the performance of other edible oils,
as they compete for a share in the global vegetable oils market.
    
    Palm, soy and crude oil prices as of 0456 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN8     2563  -27.00    2563    2563       2
 MY PALM OIL       FEB8     2623   -2.00    2615    2630     240
 MY PALM OIL       MAR8     2628   +3.00    2616    2635    7765
 CHINA PALM OLEIN  MAY8     5350  +28.00    5324    5362  181492
 CHINA SOYOIL      MAY8     5782   +4.00    5754    5792  193160
 CBOT SOY OIL      MAR8    33.59   +0.00   33.51   33.63    2854
 INDIA PALM OIL    JAN8   563.00   +1.20  562.60   564.7     126
 INDIA SOYOIL      JAN8    740.3   +0.90     740  740.75     260
 NYMEX CRUDE       FEB8    62.19   +0.46   61.85   62.56   41492
  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 = 3.9980 ringgit)
($1 = 63.4750 Indian rupees)
($1 = 6.4998 Chinese yuan)  

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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