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VEGOILS-Palm tracks crude higher, weaker ringgit supports
November 24, 2017 / 5:12 AM / 23 days ago

VEGOILS-Palm tracks crude higher, weaker ringgit supports

    * Palm down 3.4 pct on week
    * Market awaits export figures for further leads - Trader
    * Palm may test resistance at 2,649 rgt/T - Technicals

    By Emily Chow
    KUALA LUMPUR, Nov 24 (Reuters) - Malaysian palm oil futures
rose in early trade on Friday, on track for a second session of
gains in five, buoyed by stronger crude oil prices and a weaker
ringgit.
    Losses in the ringgit, palm's currency of trade, supported
the edible oil by making it cheaper for holders of foreign
currencies. 
    The ringgit weakened 0.3 percent to 4.1170 against the
dollar around noon on Friday, falling from an over one-year high
reached in the previous session.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.5
percent to 2,623 ringgit a tonne at the midday break, but was
down 3.4 percent for the week so far.
    Traded volumes stood at 13,367 lots of 25 tonnes each at
noon.
    "Palm rose from strength on the energy front and as the
ringgit weakened from its recent high," said a futures trader
from Kuala Lumpur, referring to gains in U.S. crude oil prices
that hit fresh two-year highs on Friday.
    U.S. crude futures rose as the shutdown of a major crude
pipeline from Canada to the United States tightened North
American markets.
    Another trader added that a slight recovery in soyoil on the
Dalian Commodity Exchange in China also aided palm's gains.
    "The market is taking this opportunity to adjust to the
massive sell-off. It is awaiting export figures for further
leads," he said. 
    Palm oil prices dropped about 3 percent on Monday after
India announced it was raising its import duties on edible oils
to its highest in a decade. 
    Cargo surveyor Intertek Testing Services is scheduled to
release Nov. 1-25 data for Malaysia's palm oil shipments on
Saturday after 0300 GMT.
    In other related edible oils, the January soybean oil
contract on the Dalian Commodity Exchange was up 0.2
percent, while the January palm olein contract dipped
0.1 percent.
    The December soybean oil contract on the Chicago
Board of Trade was not traded as the exchange was closed for a
national holiday on Thursday.
    Palm oil is impacted by movements in other edible oils as
they compete for a share of the global vegetable oils market.
    Palm oil may retest a resistance at 2,649 ringgit per tonne,
according to Wang Tao, a Reuters market analyst for commodities
and energy technicals.
      
    Palm, soy and crude oil prices at 0447 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2540  +10.00    2535    2547     210
 MY PALM OIL       JAN8     2594  +12.00    2586    2598     855
 MY PALM OIL       FEB8     2623  +14.00    2614    2627    5910
 CHINA PALM OLEIN  MAY8     5498   -8.00    5466    5512  145488
 CHINA SOYOIL      JAN8     5932  +12.00    5896    5948  153308
 CBOT SOY OIL      DEC7    34.05   +0.00       0       0       0
 INDIA PALM OIL    NOV7   587.40   +2.40  586.60   587.5      31
 INDIA SOYOIL      DEC7    735.3   +3.40     732  735.45     600
 NYMEX CRUDE       JAN8    58.43   +0.41   57.75   58.58  193932
 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
 

 (Reporting by Emily Chow; Editing by Vyas Mohan)
  
 
 

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