January 10, 2018 / 6:28 AM / 12 days ago

VEGOILS-Palm oil rebounds on weaker ringgit, stronger crude oil

    * Palm in line for third session of gains in four
    * Market also up on stronger overnight CBOT soyoil - trader
    * Malaysia's end-Dec palm stocks rise 7 pct m/m - MPOB

    By Emily Chow
    KUALA LUMPUR, Jan 10 (Reuters) - Malaysian palm oil futures
rose on Wednesday, rebounding from a sharp drop in the previous
session, on a weaker ringgit and gains in crude oil
prices.
    Weakness in the ringgit, palm's currency of trade, typically
lends support to the vegetable oil by making it cheaper for
holders of foreign currencies. 
    The ringgit weakened against the dollar on Wednesday
morning, and was last down 0.02 percent at 4.0080 against the
dollar.    
    The benchmark palm oil contract for March delivery
on the Bursa Malaysia Derivatives Exchange was up 0.6 percent at
2,613 ringgit ($651.95) a tonne at the midday break, heading for
a third session of gains in four.
    It had declined 1.1 percent on Tuesday, in its strongest
fall in nearly three weeks.
    Trading volumes stood at 17,966 lots of 25 tonnes each at
Wednesday noon.
    "Overnight (gains in) soyoil also pushed the market up,"
said a trader from Kuala Lumpur. 
    Palm oil tracks the performance of other edible oils, as
they compete for a share in the global vegetable oils market.
    The March soybean oil contract on the Chicago Board
of Trade gained 0.5 percent in the previous session, but was
down 0.2 percent on Wednesday.
    In other related edible oils, the May soybean oil on the
Dalian Commodity Exchange was up 0.3 percent, while the
Dalian January palm oil contract declined 0.3 percent. 
    Gains in crude oil prices also supported palm as the
vegetable oil is used as feedstock in the making of biodiesel, a
fuel substitute. 
    Oil prices hit their highest levels since 2014 on Wednesday
due to ongoing production cuts led by OPEC as well as healthy
demand, although analysts cautioned that markets may be
overheating.
    Palm oil stocks in Malaysia rose 7 percent on month to a
more than two-year high of 2.7 million tonnes at end-December,
showed data released by the Malaysian Palm Oil Board during the
midday break on Wednesday. Production fell 5.6 percent on month
to 1.8 million tonnes, while exports edged up 4.9 percent to 1.4
million tonnes.
    
    Palm, soy and crude oil prices as of 0622 GMT
 Contract          Month    Last  Change     Low   High   Volume
 MY PALM OIL       JAN8        0   +0.00       0      0        0
 MY PALM OIL       FEB8     2610  +13.00    2603   2616      301
 MY PALM OIL       MAR8     2613  +16.00    2604   2619     7688
 CHINA PALM OLEIN  MAY8     5328  -16.00    5316   5372   259422
 CHINA SOYOIL      MAY8     5796  +18.00    5766   5822   266594
 CBOT SOY OIL      MAR8    33.64   +0.00   33.61   33.7     3030
 INDIA PALM OIL    JAN8   561.30   +1.40  560.50    562      190
 INDIA SOYOIL      JAN8    742.2   +1.90     741  742.2      870
                                                      5  
 NYMEX CRUDE       FEB8    63.44   +0.48   63.33  63.53    35935
  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 = 4.0080 ringgit)
($1 = 63.7100 Indian rupees)
($1 = 6.5230 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
  
 
 
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