March 14, 2018 / 5:26 AM / 3 months ago

VEGOILS-Palm rises on overnight gains in US soyoil, technical correction

    * Palm hits one-week top of 2,433 rgt/tonne 
    * Ramadan buying could come in soon - trader
    * Palm oil may bounce into 2,435-2449 rgt/T range

    By Emily Chow
    KUALA LUMPUR, March 14 (Reuters) - Malaysian palm oil
futures hit a one-week high in early trade on Wednesday,
supported by overnight gains in soyoil on the Chicago Board of
Trade and on technical correction after the tropical oil fell to
a more than one-and-a-half-year low earlier this week. 
    The benchmark palm oil contract for May delivery
on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at
2,430 ringgit ($624.04) a tonne at the midday break, heading for
a third consecutive session of gains.
    Earlier in the session, it climbed to its highest level
since March 8 at 2,433 ringgit. Palm fell to its lowest level
since August 2016 at 2,350 ringgit a tonne on Monday.    
    Trading volumes stood at 37,199 lots of 25 tonnes each at
the midday break on Wednesday.
    "The market is most likely tracking soyoil, coupled with
some technical correction," said a futures trader in Kuala
    Another trader said he still expected prices to fall to the
2,300 ringgit range after the Muslim fasting period of Ramadan,
which begins in mid-May this year.
    "Markets like the Middle East and North Africa will start
buying for Ramadan from end-March to mid-April," he said. "But
demand growth will be standard and prices will drop afterwards."
    The month of Ramadan sees Muslims worldwide fast for the day
before breaking it with communal feasting, incurring higher
usage of palm oil for cooking purposes. Buyers of the oil
usually stock up about a month ahead of Ramadan. 
    The Chicago Board of Trade's May soybean oil contract
 gained 1.5 percent on Tuesday and was down 0.1 percent
on Wednesday. 
    The May soybean oil on China's Dalian Commodity Exchange
 rose 0.8 percent and the Dalian May palm oil contract
 climbed 0.9 percent.
    Palm oil prices are impacted by movements in rival edible
oils as they compete in the global vegetable oils market.
    Palm oil may bounce into a range of 2,435-2,449 ringgit per
tonne, according to Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    Palm, soy and crude oil prices as of 0500 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       MAR8        0   +0.00       0       0       0
 MY PALM OIL       APR8     2431  +14.00    2414    2433     492
 MY PALM OIL       MAY8     2430  +17.00    2410    2433   11206
 CHINA PALM OLEIN  MAY8     5132  +48.00    5108    5144  147376
 CHINA SOYOIL      MAY8     5736  +46.00    5712    5742  166482
 CBOT SOY OIL      MAY8    32.19   +0.00   32.17   32.37    5957
 INDIA PALM OIL    MAR8   638.00   -1.20  637.30   641.1     137
 INDIA SOYOIL      MAR8    777.5   -1.20   777.5     778     220
 NYMEX CRUDE       APR8    60.71   +0.00   60.68   60.92   31001
  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 = 3.8940 ringgit)
($1 = 65.0000 Indian rupees)
($1 = 6.3140 Chinese yuan)

 (Reporting by Emily Chow; Editing by Subhranshu Sahu)
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