Palm oil edges up on weaker ringgit, soyoil strength

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KUALA LUMPUR (Aug 7): Malaysian palm oil futures edged higher in early trade on Tuesday, extending gains into a third session, on a weaker ringgit and strength in related edible oils.

The ringgit was down 0.2% at 4.0830 per dollar, its weakest since Dec 27, and has declined 0.9% so far this year.

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

"The market is up on the weaker ringgit," said a Singapore-based futures trader.     

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at RM2,211 (US$541.51) a tonne at noon.  

Trading volumes stood at 10,026 lots of 25 tonnes each.

Gains in related edible oils also supported the palm oil market, said another trader in Kuala Lumpur.

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 rose 0.6%, while the September soybean oil contract on China's Dalian Commodity Exchange was up 0.6%.

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

Meanwhile, the Dalian September palm oil contract edged up 0.1%.

Palm, soy and crude oil prices at 0608 GMT

Contract          Month    Last   Change     Low   High  Volume
MY PALM OIL       AUG8        0    +0.00  0 0 0
MY PALM OIL       SEP8     2195    +4.00    2188   2195     232
MY PALM OIL       OCT8     2211    +5.00    2199   2212    3823
CHINA PALM OLEIN  JAN9     4906   +10.00    4878   4920  199712
CHINA SOYOIL      JAN9     5876   +36.00    5832   5882  274632
CBOT SOY OIL      DEC8    29.01    +0.06   28.79  29.01    1476
INDIA PALM OIL    AUG8   592.50    +0.40  591.70  593.7     158
INDIA SOYOIL      AUG8    734.4    +0.55   733.5    735    1990
NYMEX CRUDE       SEP8    69.18    +0.17   68.81  69.24   28042

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 = RM4.0830)
(US$1 = 68.8300 Indian rupees)
(US$1 = 6.8512 Chinese yuan)