October 3, 2017 / 5:32 AM / 9 months ago

VEGOILS-Palm set for first gain in a week, buoyed by weaker ringgit

    * Mkt may keep gains if ringgit stays weak, soyoil holds
    * Palm may bounce to 2,694 rgt/T -technicals

    By Emily Chow
    KUALA LUMPUR, Oct 3 (Reuters) - Malaysian palm oil futures
were on Tuesday set for their first daily gain in a week,
supported by a weaker ringgit.     
    The benchmark palm oil contract for December delivery
 on the Bursa Malaysia Derivatives Exchange was up 0.4
percent at 2,677 ringgit ($631.59) a tonne at the midday break,
on course for the first gain after four losing sessions. It
earlier fell to its lowest in 1-1/2 months at 2,653 ringgit. 
    Traded volumes stood at 13,829 lots of 25 tonnes each at the
midday break.
    "The market is oversold and the ringgit slumped to a
four-week low, so we are seeing some technical buying," said a
futures trader in Kuala Lumpur, declining to be identified as
she was not authorised to speak with media.
    "It may hold for today if the ringgit stays weak and soyoil
doesn't drop much," added the trader, referring to soyoil on the
Chicago Board of Trade (CBOT). 
    A weaker ringgit typically supports the tropical oil by
making it cheaper for buyers holding foreign currencies. 
    The ringgit fell as much as 0.3 percent to 4.2425 against
the dollar on Tuesday morning, its weakest in a month. It was
last down 0.2 percent at 4.2385 per dollar. 
    In other related oils, the December CBOT soybean oil
contract edged up 0.1 percent. Palm oil prices are
affected by the performance of related edible oils such as soy,
as they compete for a share of the global vegetable oils market.
    China's Dalian Commodity Exchange is closed for a national
public holiday. 
    Palm oil may bounce to 2,694 ringgit per tonne, as it could
stabilise around support at 2,651 ringgit, said Wang Tao, a
Reuters market analyst for commodities and energy technicals.

 Palm, soy and crude oil prices at 0502 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       OCT7     2698   +9.00    2690    2698      62
 MY PALM OIL       NOV7     2682  +17.00    2659    2682     333
 MY PALM OIL       DEC7     2677  +11.00    2653    2678    5842
 CHINA PALM OLEIN  JAN8        0   +0.00       0       0       0
 CHINA SOYOIL      JAN8        0   +0.00       0       0       0
 CBOT SOY OIL      DEC7    32.56   +0.00   32.35   32.57    3733
 INDIA PALM OIL    OCT7   530.00   -2.10  529.50   531.7     143
 INDIA SOYOIL      OCT7   660.15   -1.85  660.15  662.15     710
 NYMEX CRUDE       NOV7    50.45   -0.13   50.39   50.61   13295
 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 = 4.2385 ringgit)
($1 = 65.5775 Indian rupees)
($1 = 6.6533 Chinese yuan)

 (Reporting by Emily Chow; Editing by Joseph Radford)
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