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VEGOILS-Palm sees first gain in four sessions on stronger overnight soyoil
November 7, 2017 / 5:17 AM / a month ago

VEGOILS-Palm sees first gain in four sessions on stronger overnight soyoil

    * Palm in line to snap losing streak
    * Gains in crude oil prices also supports palm - Trader
    * Ringgit seen capping palm's gains - Trader
    * Palm neutral in 2,779-2,808 rgt/T range - Technicals

    By Emily Chow
    KUALA LUMPUR, Nov 7 (Reuters) - Malaysian palm oil futures
rose in early trade on Tuesday, on track to snap three earlier
losing sessions, as palm gained on overnight strength in Chicago
Board of Trade's (CBOT) soyoil. 
    Palm was also supported by Monday's surge in crude oil
prices, but gains could be capped by a stronger Malaysian
ringgit, said traders. 
    A stronger ringgit, palm's currency of trade, makes the
edible oil more expensive for holders of foreign currencies. The
ringgit was last up 0.1 percent against the U.S. dollar at
4.2250. 
    The benchmark palm oil contract for January delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.3
percent at 2,791 ringgit ($660.59) a tonne at the midday break. 
    Traded volumes stood at 14,250 lots of 25 tonnes each at
noon.
    "Overnight gains in rival oilseed soy and stronger crude oil
may renew some buying interest," said a futures trader from
Kuala Lumpur, referring to CBOT soyoil and gains in crude oil
prices.
    Oil prices rose as much as 3.5 percent on Monday, hitting
their highest since mid-2015, on the back of a corruption
crackdown in Saudi Arabia and as the U.S. rig count fell.
    Another trader added that while palm was up on soyoil's
overnight strength, a stronger ringgit was seen "checking palm's
upside."
    Palm oil is affected by movements in related oils, as they
compete for a share in the global vegetable oils market. The
December soybean oil contract on the Chicago Board of
Trade rose 0.9 percent on Monday, but was trading flat around
0455 GMT on Tuesday. 
    Crude oil also affects palm prices as the vegetable oil is
used as feedstock to make biodiesel as a fuel substitute.
    Palm oil looks neutral in a range of 2,779-2,808 ringgit per
tonne, according to Wang Tao, a Reuters market analyst for
commodities and energy technicals.
    In other related edible oils, the January soybean oil
contract on the Dalian Commodity Exchange was up 0.7
percent, while the January palm olein contract on Dalian
rose 0.5 percent.
   
    Palm, soy and crude oil prices at 0455 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       NOV7     2756  -16.00    2755    2794     309
 MY PALM OIL       DEC7     2774   +6.00    2774    2792     314
 MY PALM OIL       JAN8     2791   +8.00    2789    2808    7178
 CHINA PALM OLEIN  JAN8     5656  +30.00    5614    5680  190176
 CHINA SOYOIL      JAN8     6130  +40.00    6090    6156  161298
 CBOT SOY OIL      DEC7    34.73   +0.00   34.66   34.87    5591
 INDIA PALM OIL    NOV7   552.70   +2.10  552.30     554      99
 INDIA SOYOIL      NOV7    692.9   +2.00   692.2   694.8     810
 NYMEX CRUDE       DEC7    57.35   +0.00   57.16   57.44   22424
 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 = 4.2250 ringgit)
($1 = 64.8200 Indian rupees)
($1 = 6.6210 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Richard Pullin)
  
 
 

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