February 28, 2018 / 5:28 AM / 6 months ago

VEGOILS-Palm oil edges higher on weaker ringgit

    * Palm up fourth consecutive session
    * Market up 2.2 pct so far in February 
    * Palm neutral in 2,537-2,562 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Feb 28 (Reuters) - Malaysian palm oil futures
edged up in early trade on Wednesday, extending gains into a
fourth session, on support from a weaker ringgit. 
    Weakness in the ringgit, palm's currency of trade, usually
makes the tropical oil cheaper for foreign buyers. The Malaysian
currency fell 0.4 percent against the dollar to 3.9230, its
weakest in two weeks. 
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was up 0.2 percent at
2,547 ringgit ($649.25) a tonne at the midday break.
    It has gained 2.2 percent so far in February, after three
straight monthly declines.   
    Trading volumes stood at 16,131 lots of 25 tonnes each at
the midday break on Wednesday.
    "The market is still in sideways range, it is mostly the
weak ringgit contributing to palm's upside today," said a Kuala
Lumpur-based futures trader.
    Palm oil prices have been trading in a range this week,
tracking movements in other edible oils, and ahead of the
release of data from cargo surveyors and an industry conference
next week, where leading analysts are scheduled to speak. 
    Palm oil prices are impacted by movements in rival edible
oils as they compete for a share in the global vegetable 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 up 0.4 percent. The Dalian
May palm oil contract was up 0.3 percent.    
    Palm oil looks neutral in a range of 2,537-2,562 ringgit per
tonne, and an escape could suggest a direction, according to
Reuters market analyst for commodities and energy technicals
Wang Tao.
    Palm, soy and crude oil prices as of 0500 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAR8     2560   +4.00    2558    2562     671
 MY PALM OIL       APR8     2556   +4.00    2549    2558    1211
 MY PALM OIL       MAY8     2547   +5.00    2534    2551    7954
 CHINA PALM OLEIN  MAY8     5298  +16.00    5264    5314  194104
 CHINA SOYOIL      MAY8     5786  +20.00    5744    5810  239976
 CBOT SOY OIL      MAY8     32.5   +0.13   32.35   32.57   15199
 INDIA PALM OIL    FEB8   586.30   +0.30  586.10   586.5      24
 INDIA SOYOIL      MAR8    753.8   +0.45   753.2   755.4     920
 NYMEX CRUDE       APR8    62.69   -0.32   62.53   62.87   39462
  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 = 3.9230 ringgit)
($1 = 65.1000 Indian rupees)
($1 = 6.3260 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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