Palm oil edges up on stable ringgit, technical rebound

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KUALA LUMPUR (Dec 6): Malaysian palm oil futures edged up in early trade on Wednesday on support from a stable ringgit and a technical rebound, after a fall to a more than four-month low in the previous session.

Palm oil slid in its last two sessions due to a strengthening ringgit, which makes the tropical oil more expensive for holders of foreign currencies and lowers demand. 

The ringgit, whch rose to its highest since September 2016 against the dollar on Tuesday, was little changed in Wednesday's trade around noon. It was last up just 0.02% at 4.0650 ringgit to the dollar.     

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at 2,568 ringgit (US$631.73) a tonne at the midday break, in line for a first gain in three days.

Palm, however, is down 1.3% so far this week, on track for a sixth week of losses.

Traded volumes stood at 10,991 lots of 25 tonnes each at noon.

"Palm is up as the ringgit seems stable," said a Kuala Lumpur based trader, adding that overnight gains in soyoil on the Chicago Board of Trade also provided support to palm. 

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

The January soybean oil contract on the Chicago Board of Trade added 0.2% in its previous session, but was last down 0.2% in trade on Wednesday.

In other related oils, the January soybean oil contract on the Dalian Commodity Exchange fell 0.2%, while the Dalian January palm olein contract declined 0.4%.
    
 Palm, soy and crude oil prices at 0515 GMT

 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       DEC7     2450    -6.00    2450   2460      65
 MY PALM OIL       JAN8     2532    +1.00    2524   2536     378
 MY PALM OIL       FEB8     2568    +5.00    2553   2572    4628
 CHINA PALM OLEIN  MAY8     5416   -10.00    5380   5436  238372
 CHINA SOYOIL      MAY8     5994   -16.00    5964   6012  198016
 CBOT SOY OIL      JAN8    33.44    -0.07   33.33   33.5    2516
 INDIA PALM OIL    DEC7   576.50    -1.80  575.80  579.5      68
 INDIA SOYOIL      DEC7      724    -2.00   723.4  725.8     310
 NYMEX CRUDE       JAN8    57.36    -0.26   57.31  57.48   15583

 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 = 4.0650 ringgit)
(US$1 = 64.4250 Indian rupees)
(US$1 = 6.6129 Chinese yuan)