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VEGOILS-Palm rebounds on stronger soy, crude oil prices
September 26, 2017 / 5:18 AM / in 3 months

VEGOILS-Palm rebounds on stronger soy, crude oil prices

    * Palm in line for first gain in three sessions
    * Market also up on weaker ringgit - trader

    By Emily Chow
    KUALA LUMPUR, Sept 26 (Reuters) - Malaysian palm oil futures
rose on Tuesday, recovering from more than 2 percent losses in
the previous two sessions, as it tracked gains in global crude
oil prices and rival oilseed soy on the Chicago Board of Trade.
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.9
percent to 2,715 ringgit ($645.97) a tonne at the midday break,
its best intraday percentage gain in nearly two weeks.
    Traded volumes stood at 17,004 lots of 25 tonnes each at
noon.
    "We're seeing some short covering today... There is also
stronger crude oil prices," said a futures trader from Kuala
Lumpur. 
    Oil prices extended gains on Tuesday, with Brent crude
hitting a 26-month high, supported by Turkey's threat to cut
crude flows from Iraq's Kurdistan region to the outside world.

    Palm is impacted by movements in crude oil, as the tropical
oil is used as feedstock for producing biodiesel, a fuel
substitute. 
    A weaker ringgit also provided some support, the
trader said. 
    The ringgit, the currency palm oil is traded in, fell as
much as 0.2 percent in early trade to 4.2100, its weakest since
Sept. 7. Weakeness in the ringgit makes palm oil cheaper for
holders of foreign currencies. 
    The October soybean oil contract on the Chicago Board
of Trade was up 0.2 percent, while the January soybean oil
contract on the Dalian Commodity Exchange fell 0.3
percent. 
    The price direction of related edible oils including soy
affects palm oil, as they compete for a share of the global
vegetable oils market. 
    In other related oils, the January palm olein contract
 dropped 0.2 percent.
        
 Palm, soy and crude oil prices at 0452 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2725  +10.00    2723    2726      95
 MY PALM OIL       NOV7     2711  +21.00    2696    2714    1724
 MY PALM OIL       DEC7     2715  +24.00    2699    2718    9749
 CHINA PALM OLEIN  JAN8     5610  -16.00    5574    5620  238644
 CHINA SOYOIL      JAN8     6186  -20.00    6172    6202  170056
 CBOT SOY OIL      DEC7    34.08   +0.08   34.02    34.1    3008
 INDIA PALM OIL    SEP7   545.60   +2.10  545.10   547.8      46
 INDIA SOYOIL      OCT7   677.85   +0.95     676     679    1470
 NYMEX CRUDE       NOV7    52.32   +0.10   52.06   52.43   35938
 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 = 4.2030 ringgit)
($1 = 65.2275 Indian rupees)
($1 = 6.6125 Chinese yuan)

 (Reporting by Emily Chow; Editing by Biju Dwarakanath)
  
 
 

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