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VEGOILS-Palm oil edges up on better demand outlook
August 18, 2017 / 5:26 AM / a month ago

VEGOILS-Palm oil edges up on better demand outlook

    * Palm poised for second session of gains
    * Market also up tracking gains in overnight soyoil, kernel
oil prices - Traders
    * Palm oil may test resistance at 2,687 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Aug 18 (Reuters) - Malaysian palm oil futures
were in line for their second consecutive session of gains at
the midday break on Friday, buoyed by expectations of rising
demand and tracking gains in palm kernel oil prices.
    Another trader said palm prices were also supported by
overnight gains in U.S. soyoil on the Chicago Board of Trade. 
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.3
percent at 2,665 ringgit ($620.72) at the midday break. 
    Traded volumes stood at 21,354 lots of 25 tonnes each at
noon.
    "The market is up on expectations of strong demand," said a
futures trader from Kuala Lumpur, as key markets India and China
could stock up purchases of the tropical oil ahead of the Diwali
and mid-Autumn festivals in October.
    Malaysian palm oil exports for the first half of August
dropped compared with the corresponding period in July,
according to data from cargo surveyors. 
    Intertek Testing Services reported a 14.6 percent decline,
while Societe Generale de Surveillance showed a 12.8 percent
drop.
    Another trader added that crude palm oil was supported by
gains in palm kernel oil's prices, which rose to its highest in
nearly three months on Thursday. Price of palm kernel oil, a
substitute of coconut oil usually used to make soap, detergent
and cosmetics, was last at 4,894.24 ringgit a tonne, its highest
since May 25. PKO-MYSTH-M1
    Palm oil may test a resistance at 2,687 ringgit per tonne, a
break above which could open the way towards the next resistance
at 2,759 ringgit, said Reuters market analyst for commodities
and energy technicals Wang Tao.
    In other related oils, the October soybean oil contract
 on the Chicago Board of Trade saw strong gains on
Thursday, rising as much as 1.1 percent for its strongest daily
gain since July 28. It was last up slightly 0.03 percent on
Friday.
    The January soybean oil on the Dalian Commodity Exchange
 rose up to 0.4 percent, while the January palm olein
contract was also up 0.5 percent.
    Palm oil prices are impacted by the movements in related
edible oils, as they compete for a share in the global vegetable
oils market. 
    
 Palm, soy and crude oil prices at 0510 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       SEP7     2657   +8.00    2636    2660     617
 MY PALM OIL       OCT7     2653   +6.00    2632    2658    2919
 MY PALM OIL       NOV7     2666   +8.00    2644    2670   11199
 CHINA PALM OLEIN  JAN8     5354  +28.00    5324    5366  291658
 CHINA SOYOIL      JAN8     6234  +26.00    6204    6246  242280
 CBOT SOY OIL      DEC7    33.55   +0.02   33.46   33.64    2200
 INDIA PALM OIL    AUG7   505.80   +1.80  505.00   506.3     105
 INDIA SOYOIL      AUG7    639.5   +0.40   639.5   639.5      30
 NYMEX CRUDE       SEP7    47.05   -0.04   46.92   47.11    7616
 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 = 4.2950 ringgit)
($1 = 64.1200 Indian rupees)
($1 = 6.6755 Chinese yuan)
    

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

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