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VEGOILS-Palm rises tracking overnight gains in soyoil
September 21, 2017 / 6:18 AM / 3 months ago

VEGOILS-Palm rises tracking overnight gains in soyoil

    * Traders expect palm's gains to be curbed on profit-taking
    * Market sees some buying pressure as output seen recovering
- Trader
    * Palm oil may end correction above 2,741 rgt/T - Technicals

    By Tavleen Tarrant and Emily Chow
    KUALA LUMPUR, Sept 21 (Reuters) - Malaysian palm oil futures
were on track for their second straight session of gains on
Thursday, buoyed by overnight rise in soyoil prices on the
Chicago Board of Trade (CBOT).
    However, traders expect palm's gains to be curbed due to
profit-taking ahead of a long weekend. The Malaysian stock
market will be closed on Friday for a public holiday. 
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.1
percent to 2,773 ringgit ($660.55) a tonne at the midday break.
    The market climbed, snapping four consecutive sessions of
declines, tracking weakness in related edible oils and bearish
price outlook at an industry conference last week.

    "Palm oil futures may extend Wednesday's gains borrowing
strength from the overnight rise in rival oilseed," remarked a
futures trader from Kuala Lumpur, referring to soyoil on the
CBOT.  
    He added profit-taking ahead of a public holiday may cap
gains.
    Another futures trader said the market is calm ahead of the
long weekend. 
    "(Market) sentiment is kept under pressure due to a lack of
buying confidence as production is showing some improvement,"
she said, adding that a weaker ringgit also supported palm. 
    The ringgit, palm's traded currency, fell to its
weakest in a week on Thursday. It was last down 0.3 percent at
4.1995 against the dollar. A weaker ringgit typically makes palm
oil cheaper for holders of foreign currencies.  
    Palm oil prices are also affected by movements in related
edible oils including soy, as they compete for a share of the
global vegetable oils market. 
    The October soybean oil contract on the Chicago Board
of Trade shed previous session's gains to trade 0.7 percent
lower on Thursday.
    In other related oils, the January soybean oil contract on
the Dalian Commodity Exchange fell 0.6 percent, while
the January palm olein contract declined 0.7 percent.
    Palm oil may have more or less completed its correction from
the Sept. 14 high of 2,876 ringgit per tonne, and is poised to
resume its uptrend, according to Wang Tao, a Reuters market
analyst for commodities and energy technicals.
        
 Palm, soy and crude oil prices at 0604 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2779   -7.00    2750    2792     275
 MY PALM OIL       NOV7     2769   +0.00    2768    2781    4130
 MY PALM OIL       DEC7     2773   +3.00    2769    2783    8474
 CHINA PALM OLEIN  JAN8     5682  -40.00    5668    5750  496248
 CHINA SOYOIL      JAN8     6294  -30.00    6278    6350  302330
 CBOT SOY OIL      DEC7    34.73   -0.18   34.66   34.99    3120
 INDIA PALM OIL    SEP7   540.50   +0.60  538.20   542.8     274
 INDIA SOYOIL      OCT7   675.35   +2.05  674.05     677    9090
 NYMEX CRUDE       NOV7    50.64   -0.05   50.61   50.79   18105
 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 = 4.1915 ringgit)
($1 = 64.4200 Indian rupees)
($1 = 6.5660 Chinese yuan)
    

 (Reporting by Tavleen Tarrant, Writing by Emily Chow; Editing
by Sherry Jacob-Phillips)
  
 
 

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