KUALA LUMPUR (Oct 5): Malaysian palm oil futures extended gains to a one-week high on Thursday morning, and were set for a third consecutive winning session tracking strength in rival soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 0.9% at RM2,740 (US$648.21) a tonne at the midday break. It earlier rose to RM2,743, its strongest level since Sept 27.
Traded volumes stood at 16,318 lots of 25 tonnes each at noon.
"Palm is up tracking soyoil, overnight and also this morning," said a futures trader from Kuala Lumpur.
"Gains should sustain until the Chinese are back next week," he said, referring to the Dalian Commodities Exchange market in China which is closed this week for national holidays.
Palm also found support earlier this week from expectations that Malaysian inventory levels would not rise as much as forecast.
A Reuters poll expects September end-stocks to notch up to 2 million tonnes, a 3.2% gain from 1.94 million tonnes.
Output is seen rising to 1.84 million tonnes, the strongest level in nearly two years, while exports are forecast to gain 7.8% to 1.60 million tonnes.
Official data from the Malaysian Palm Oil Board is scheduled for release on Oct. 10 after 0430 GMT.
In other related edible oils, the December soybean oil contract on the Chicago Board of Trade climbed 1.5% in its previous session, its strongest daily gain in a month. It was last up 0.7% on Thursday.
Palm oil prices are affected by the performance of related edible oils including soy, as they compete for a share of the global vegetable oils market.
Palm oil is expected to test a resistance at RM2,737 per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0510 GMT
|MY PALM OIL||OCT7||2744||+17.00||2737||2744||36|
|MY PALM OIL||NOV7||2741||+22.00||2734||2745||429|
|MY PALM OIL||DEC7||2740||+25.00||2729||2743||6798|
|CHINA PALM OLEIN||JAN8||0||+0.00||0||0||0|
|CBOT SOY OIL||DEC7||33.45||+0.17||33.21||33.45||3640|
|INDIA PALM OIL||OCT7||541.40||+2.80||540.50||541.9||160|
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 = RM4.2270)
(US$1 = 65.0975 Indian rupees)
(US$1 = 6.6533 Chinese yuan)