KUALA LUMPUR (Aug 17): Malaysian palm oil futures jumped over 1% in early trade on Friday, tracking strength in related edible oils on the US Chicago Board of Trade and China's Dalian Commodity Exchange.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was 1% higher at RM2,244 (US$547.05) a tonne at the midday break. It earlier rose 1.2% to RM2,248, its highest since Aug 10.
However, the market has gained 0.1% so far this week.
Trading volumes stood at 13,692 lots of 25 tonnes each at noon.
"External markets are bullish. Overnight it (soyoil) went up, therefore impacting palm," said a Singapore-based trader.
Palm oil prices are impacted by movements of other edible oils, as they compete for a share in the global vegetable oils market.
Chicago soyoil rose in tandem with soybeans, which hit a one-week high on Thursday on support from expectations that China may return to the US market.
The Chicago December soybean oil contract rose 1% on Thursday, and was last up 0.3% on Friday.
China said on Thursday it would hold a fresh round of trade talks with the United States in Washington later this month, offering hope for progress in resolving a conflict that has set world markets on edge.
China, a key buyer of soybeans from the United States, had imposed extra tariffs on US soybean imports and shifted its purchases to Brazil following a trade spat between the two nations.
However, two vessels carrying US soybeans have entered China, suggesting that China will still need to import from the United States to cover its needs, according to traders.
In other related oils, the January soybean oil contract on China's Dalian Commodity Exchange rose 0.9%, while the Dalian January palm oil contract gained 1.2%.
Palm oil may rise into a range of RM2,269-2,277 per tonne, as it has cleared a resistance at RM2,224, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 0504 GMT
|MY PALM OIL||SEP8||2210||+19.00||2206||2213||699|
|MY PALM OIL||OCT8||2225||+22.00||2217||2228||2730|
|MY PALM OIL||NOV8||2244||+22.00||2236||2248||7126|
|CHINA PALM OLEIN||JAN9||4920||+58.00||4862||4954||267814|
|CBOT SOY OIL||DEC8||28.57||+0.07||28.38||28.68||4325|
|INDIA PALM OIL||AUG8||603.50||+3.90||601.00||603.5||396|
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 = RM4.1020)
(US$1 = 70.0800 Indian rupees)
(US$1 = 6.8830 Chinese yuan)