KUALA LUMPUR (Aug 6): Malaysian palm oil futures rose nearly 1% in early trade on Monday, tracking strength in related edible oils and in line for a second straight session of gains.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.8% at RM2,214 (US$543.31) a tonne at noon. The market earlier rose as much as 0.9% to RM2,215.
Trading volumes stood at 8,556 lots of 25 tonnes each at the midday break.
"The market is seeing support from overnight US soyoil as well as on strength in Dalian," said a Kuala Lumpur-based futures trader.
Gains in the ringgit around noon on Monday could cap further increases in palm, another trader added.
The ringgit, palm's currency of trade, strengthened 0.1% to 4.0750 against the dollar at the midday break after four previous days of losses.
A stronger ringgit usually makes the tropical oil more expensive for holders of foreign currencies.
In other related oils, the Chicago December soybean oil contract rose 0.9% in Friday's session, and was last up 0.3% on Monday.
Meanwhile, the September soybean oil contract on China's Dalian Commodity Exchange rose 0.8% and the Dalian September palm oil contract was up 0.5%.
Palm oil prices are influenced by the performance of other edible oils as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 0530 GMT
|MY PALM OIL||AUG8||0||+0.00||0||0||0|
|MY PALM OIL||SEP8||2193||+15.00||2183||2193||296|
|MY PALM OIL||OCT8||2214||+18.00||2202||2215||4955|
|CHINA PALM OLEIN||JAN9||4900||+16.00||4856||4918||174448|
|CBOT SOY OIL||DEC8||28.94||+0.00||28.78||28.94||1700|
|INDIA PALM OIL||AUG8||590.40||-1.30||589.50||592.2||213|
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 = RM4.0750)
(US$1 = 68.6025 Indian rupees)
(US$1 = 6.8275 Chinese yuan)