Palm jumps more than 1% on soyoil strength, weaker ringgit

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KUALA LUMPUR (Aug 7): Malaysian palm oil futures jumped by more than 1% to its highest in nearly a month on Tuesday, extending gains into a third session on strength in related edible oils and earlier weakness in the ringgit.

The ringgit had hit its weakest since Dec 27 on Tuesday, but closed up 0.1% at 4.0470 against the dollar.

Weakness in palm's currency of trade, supports the vegetable oil price by making it cheaper for holders of foreign currencies.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.3% at 2,235 ringgit (US$548.60) a tonne at the close. It earlier hit an intraday high of 2,237 ringgit, its strongest levels since July 11.   

Trading volumes stood at 52,881 lots of 25 tonnes each.

"The market was tracking soybean oil during Asian hours," said a trader in Kuala Lumpur, referring to U.S. soyoil on the Chicago Board of Trade.

Palm oil prices are influenced by the performance of other edible oils, as they compete for a share in the global vegetable oils market.

The Chicago December soybean oil contract jumped 1%, while the September soybean oil contract on China's Dalian Commodity Exchange was up 0.6%. 

U.S. soyoil rose in line with a rebound in soybean prices, after the U.S. Department of Agriculture pegged the crop condition below market expectations.

Meanwhile, the Dalian September palm oil contract edged up 0.3%.
                
 Palm, soy and crude oil prices at 1116 GMT

 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       AUG8        0  +15.00       0       0       0
 MY PALM OIL       SEP8     2215  +23.00    2188    2215    2686
 MY PALM OIL       OCT8     2237  +29.00    2199    2237   17508
 CHINA PALM OLEIN  JAN9     4912  +16.00    4878    4920  238408
 CHINA SOYOIL      JAN9     5878  +38.00    5832    5894  337878
 CBOT SOY OIL      DEC8    29.08   +0.06   28.79    29.1    3724
 INDIA PALM OIL    AUG8   594.80   +2.70  591.70   595.3     760
 INDIA SOYOIL      AUG8    737.5   +3.65   733.5  737.65    8440
 NYMEX CRUDE       SEP8    69.75   +0.74   68.81   69.75  102927

 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
 
(US$1 = 4.0740 ringgit)
(US$1 = 68.6900 Indian rupees)
(US$1 = 6.8245 Chinese yuan)