November 16, 2017 / 5:33 AM / 8 months ago

VEGOILS-Palm rises after 5 sessions of falls on technical correction

    * Overnight gains in CBOT soyoil also help market
    * Gains capped by ringgit's strength - trader
    * Palm may consolidate in 2,729-2761 rgt/T range -

    By Emily Chow
    KUALA LUMPUR, Nov 16 (Reuters) - Malaysian palm oil futures
rose on Thursday after five consecutive sessions of declines on
technical correction and support from overnight gains in Chicago
Board of Trade (CBOT) soyoil. 
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.6
percent at 2,747 ringgit ($657.65) a tonne at the midday break.
    Traded volumes stood at 19,864 lots of 25 tonnes each at
    "I believe the market was oversold, and is now riding on the
recovery in overnight CBOT soyoil," said a futures trader from
Kuala Lumpur.
    "The ringgit's strength continues to cap palm's upside but
we're not sure if the ringgit can strengthen further."
    Palm declined to its weakest since Oct. 19 on Wednesday as
the ringgit hit its strongest in about a year against the
dollar. Gains in the ringgit, the currency of trade for palm,
usually make the edible oil more expensive for foreign buyers.
    The Malaysian currency was down 0.1 percent at 4.1775 around
Thursday noon.
    Palm oil prices are also affected by movements in other
edible oils as they compete for a share of the global vegetable
oils market. 
    The December soybean oil contract on the Chicago
Board of Trade surged over 2 percent in the previous session on
reports of strong demand. It was down 0.4 percent on Thursday.  
    U.S. soybean processors accelerated their crush pace in
October to the fifth highest on record and second highest ever
for the month, the National Oilseed Processors Association said
on Wednesday.
    In other related edible oils, the January soybean oil
contract on the Dalian Commodity Exchange declined 0.1
percent, while the January palm olein contract was down
0.2 percent.
    The palm oil may consolidate in a range of 2,729-2,761
ringgit per tonne, said Reuters technical analyst Wang Tao.

    Palm, soy and crude oil prices at 0501 GMT  
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2705   +8.00    2702    2721     388
 MY PALM OIL       JAN8     2726  +13.00    2717    2740    6718
 MY PALM OIL       FEB8     2747  +15.00    2737    2758    6982
 CHINA PALM OLEIN  JAN8     5496  -10.00    5438    5524  176264
 CHINA SOYOIL      JAN8     5994   -4.00    5950    6026  186726
 CBOT SOY OIL      DEC7    34.62   -0.13    34.6   34.71    4321
 INDIA PALM OIL    NOV7   557.10   +2.00  556.50   558.9      76
 INDIA SOYOIL      NOV7      685   -2.85     685  686.45     140
 NYMEX CRUDE       DEC7    55.35   +0.02   55.26   55.37    6439
 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 = 4.1770 ringgit)
($1 = 65.3700 Indian rupees)
($1 = 6.6360 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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