Palm edges up tracking soyoil strength

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KUALA LUMPUR (Jan 14): Malaysian palm oil futures edged higher on Monday, supported by the previous session's gains in Chicago soyoil prices, although a strong ringgit limited the upside.

The ringgit, palm oil's currency of trade, gained nearly 1% against the dollar last week and was last trading around a four-month high.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at RM2,175 (US$531.14) a tonne at noon, heading for a second straight session of gains.

Trading volumes stood at 9,349 lots of 25 tonnes each at the midday break.

"The market is supported by continued gains in rival oilseed soyoil," said a Kuala Lumpur-based futures trader, adding that the ringgit's strength capped the vegetable oil's gains.

Palm oil prices are impacted by changes in those of soyoil, as they compete for a share in the global vegetable oil market.

The Chicago March soybean oil contract rose 0.8% on Friday, and was last up 0.1% on Monday.

Soyoil prices rose on Friday in line with gains in soybeans, which advanced on technical buying and concerns about crop prospects in South America due to adverse weather in Brazil and Argentina.

In other related oils, the May soybean oil contract on the Dalian Commodity Exchange rose 0.4%, and the Dalian January palm oil contract dropped 5.9%.

Palm, soy and crude oil prices at 0542 GMT:

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       JAN9        0   +0.00  0 0 0
MY PALM OIL       FEB9     2128   +5.00    2126    2134     199
MY PALM OIL       MAR9     2175   +4.00    2168    2183    4173
CHINA PALM OLEIN  JAN9     4120  -258.00    4120    4400      44
CHINA SOYOIL      JAN9        0   +0.00  0 0 0
CBOT SOY OIL      JAN9    28.17   +0.00   0 0 0
INDIA PALM OIL    JAN9   548.20   +2.50  546.50   549.8     201
INDIA SOYOIL      JAN9    768.9   +5.35  766.05   769.5     830
NYMEX CRUDE       FEB9    51.05   -0.54   50.85   52.11   66075

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM4.0950)
(US$1 = 70.8000 Indian rupees)
(US$1 = 6.7578 Chinese yuan)