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VEGOILS-Palm rises to one-week top tracking stronger soyoil
October 5, 2017 / 5:24 AM / 2 months ago

VEGOILS-Palm rises to one-week top tracking stronger soyoil

    * Market in line for third day of gains
    * Gains could sustain until next week - trader
    * Palm to test resistance at 2,737 rgt/tonne - technicals

    By Emily Chow
    KUALA LUMPUR, Oct 5 (Reuters) - Malaysian palm oil futures
extended gains to a one-week high on Thursday morning, and were
set for a third consecutive winning session tracking strength in
rival soyoil on the Chicago Board of Trade (CBOT).  
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.9
percent at 2,740 ringgit ($648.21) a tonne at the midday break.
It earlier rose to 2,743 ringgit, its strongest level since
Sept. 27.
    Traded volumes stood at 16,318 lots of 25 tonnes each at
noon.
    "Palm is up tracking soyoil, overnight and also this
morning," said a futures trader from Kuala Lumpur. 
    "Gains should sustain until the Chinese are back next week,"
he said, referring to the Dalian Commodities Exchange market in
China which is closed this week for national holidays.
    Palm also found support earlier this week from expectations
that Malaysian inventory levels would not rise as much as
forecast. 
    A Reuters poll expects September end-stocks to notch up to 2
million tonnes, a 3.2 percent gain from 1.94 million tonnes.
 MYPOMS-TPO 
    Output is seen rising to 1.84 million tonnes, the strongest
level in nearly two years, while exports are forecast to gain
7.8 percent to 1.60 million tonnes. MYPOMP-CPOTT MYPOME-PO
    Official data from the Malaysian Palm Oil Board is scheduled
for release on Oct. 10 after 0430 GMT.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade climbed 1.5
percent in its previous session, its strongest daily gain in a
month. It was last up 0.7 percent on Thursday.     
    Palm oil prices are affected by the performance of related
edible oils including soy, as they compete for a share of the
global vegetable oils market.
    Palm oil is expected to test a resistance at 2,737 ringgit
per tonne, said Wang Tao, a Reuters market analyst for
commodities and energy technicals.
        
 Palm, soy and crude oil prices at 0510 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2744  +17.00    2737    2744      36
 MY PALM OIL       NOV7     2741  +22.00    2734    2745     429
 MY PALM OIL       DEC7     2740  +25.00    2729    2743    6798
 CHINA PALM OLEIN  JAN8        0   +0.00       0       0       0
 CHINA SOYOIL      JAN8        0   +0.00       0       0       0
 CBOT SOY OIL      DEC7    33.45   +0.17   33.21   33.45    3640
 INDIA PALM OIL    OCT7   541.40   +2.80  540.50   541.9     160
 INDIA SOYOIL      OCT7    663.8   +2.85   663.5   664.3     910
 NYMEX CRUDE       NOV7    49.93   -0.05   49.85   49.99   13846
 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 = 4.2270 ringgit)
($1 = 65.0975 Indian rupees)
($1 = 6.6533 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sunil Nair)
  
 
 

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