February 5, 2018 / 5:50 AM / 3 months ago

VEGOILS-Palm oil gains on weaker ringgit, short-covering

    * Palm up after two straight sessions of declines
    * Lower output forecasts support market - trader

    By Emily Chow
    KUALA LUMPUR, Feb 5 (Reuters) - Malaysian palm oil futures
rose in early trade on Monday, heading for their first session
of gains in three, as the ringgit weakened and traders
covered short positions.
    Weakness in the ringgit, palm's currency of trade, makes the
vegetable oil cheaper for holders of foreign currencies. 
    The ringgit was down 0.3 percent at 3.8950 per dollar around
Monday noon, after having gained more than 3 percent since the
start of the year. 
    The benchmark palm oil contract for April delivery
on the Bursa Malaysia Derivatives Exchange was up 0.5 percent at
2,479 ringgit ($636.46) a tonne at the midday break. 
    Trading volumes stood at 20,734 lots of 25 tonnes each at
noon.
    "The market is projecting a weaker ringgit," said a futures
trader from Kuala Lumpur.
    Palm was supported by short-covering and forecasts of lower
output, said another trader.
    Palm oil prices declined 0.4 percent in January due to a
stronger ringgit and weak demand.
    Malaysia's palm oil shipments in January fell 8-9 percent
from a month earlier, according to data from two cargo
surveyors.
    Palm oil output, however, is expected to decline in the
first quarter of the year in line with seasonal trend, reducing
market supply and lending support to prices. MYPOMP-CPOTT
    In other related edible oils, the March soybean oil contract
 on the Chicago Board of Trade was up 0.1 percent, while
the May soybean oil on the Dalian Commodity Exchange
dropped up to 1.3 percent.
    In other related edible oils, the Dalian May palm oil
contract fell 0.9 percent. 
    
    Palm, soy and crude oil prices as of 0528 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       FEB8     2491  +16.00    2451    2491     295
 MY PALM OIL       MAR8     2481  +13.00    2448    2481     377
 MY PALM OIL       APR8     2479  +12.00    2445    2480   10240
 CHINA PALM OLEIN  MAY8     5074  -44.00    5050    5094  196686
 CHINA SOYOIL      MAY8     5594  -74.00    5572    5640  267214
 CBOT SOY OIL      MAR8    32.53   +0.02   32.39   32.55    3338
 INDIA PALM OIL    FEB8   569.80   +0.50  568.30   570.7     210
 INDIA SOYOIL      FEB8   742.55   -3.40     742  746.05    2240
 NYMEX CRUDE       MAR8    64.82   -0.63   64.62   65.10   41641
  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 = 3.8950 ringgit)
($1 = 64.0825 Indian rupees)
($1 = 6.2961 Chinese yuan)  

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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