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)