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VEGOILS-Palm up from 4-mth low as weaker ringgit supports
November 28, 2017 / 5:20 AM / 2 months ago

VEGOILS-Palm up from 4-mth low as weaker ringgit supports

    * Palm in line for third gain in six sessions
    * Market up on correction after sharp falls, but gains won't
sustain - trader
    * Palm oil still targets 2,519-2,555 rgt/t range -
technicals

    By Emily Chow
    KUALA LUMPUR, Nov 28 (Reuters) - Malaysian palm oil futures
inched up on Tuesday, recovering from a four-month low hit in
the previous session, as a weaker ringgit, which makes
the tropical oil cheaper for foreign buyers and aids demand,
lent support. 
    The ringgit, the currency palm oil is traded in, was down
0.1 percent, not far one-year highs hit on Thursday.  
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange rose 0.2
percent to 2,595 ringgit ($630.47) a tonne at the midday break,
on track for a third session of gains in six.
    Traded volumes stood at 11,865 lots of 25 tonnes each at
noon.
    Palm prices hit a low of 2,565 ringgit on Monday afternoon,
its weakest level since July 25.
    "The market is reacting to a weaker ringgit," said one
futures trader from Kuala Lumpur.
    Palm prices were correcting after the sharp decline on
Monday, another trader said. 
    "But, I don't think gains will sustain as demand is still
quite slow," he said.
    Palm oil exports from Malaysia fell 8.4-8.6 percent during
Nov. 1-25 versus the corresponding period last month, according
to cargo surveyors Intertek Testing Services and Societe
Generale de Surveillance. 
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade rose 0.2 percent,
while the January soybean oil contract on the Dalian Commodity
Exchange was down 0.2 percent. 
    Dalian's January palm olein contract dropped 0.2
percent. 
    Palm oil is impacted by movements in other edible oils as
they compete for a share of the global vegetable oils market.
    Palm oil still targets a range of 2,519-2,555 ringgit per
tonne, said Reuters' market analyst for commodities and energy
technicals Wang Tao.
      
    Palm, soy and crude oil prices at 0454 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2482  -13.00    2470    2500     185
 MY PALM OIL       JAN8     2561   +8.00    2555    2569     883
 MY PALM OIL       FEB8     2595   +6.00    2580    2604    7219
 CHINA PALM OLEIN  MAY8     5426  -16.00    5404    5440  137476
 CHINA SOYOIL      JAN8     5888  -12.00    5866    5896   81856
 CBOT SOY OIL      JAN8    33.84   +0.09   33.68   33.84    3730
 INDIA PALM OIL    NOV7   588.70   +0.50  588.60     589       8
 INDIA SOYOIL      DEC7    734.5   +0.45  732.35   735.4     340
 NYMEX CRUDE       JAN8    57.74   -0.37   57.73   57.90   21248
 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 = 4.1160 ringgit)
($1 = 64.5250 Indian rupees)
($1 = 6.6045 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Biju Dwarakanath)
  
 
 

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