Palm extends gains to 1-week top on stronger US soyoil

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KUALA LUMPUR (Aug 20): Malaysian palm oil futures rose for a third straight session on Monday and touched a one-week top on support from US soyoil, although a stronger ringgit weighed on the market.   

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 0.4% at RM2,246 (US$547.14) a tonne at the midday break. Earlier in the session, it rose to RM2,260, matching an intraday high hit on Aug 10.

Trading volumes stood at 11,280 lots of 25 tonnes each at noon.

"External markets have been steady, lending support to palm," said a futures trader in Kuala Lumpur, adding that appreciation in the ringgit may cap the upside.

Gains in the ringgit, the currency of trade for palm oil, typically make the vegetable oil more expensive for foreign buyers, thus limiting demand.

The ringgit had strengthened by 0.2% to 4.0990 against the dollar by Monday noon after six consecutive sessions of declines.    

In other related oils, Chicago soybean and soyoil prices rose over 1% each on Monday as traders expect China to resume purchases of US cargoes after planned talks between the two nations.

The Chicago December soybean oil contract was up 1%, the January soybean oil contract on China's Dalian Commodity Exchange declined 0.1% and the Dalian January palm oil contract edged up 0.6%.

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

Palm oil may rise into a range of RM2,269-2,277 per tonne as it has cleared a resistance at RM2,240, said Wang Tao, a Reuters market analyst for commodities and energy technicals.    

Palm, soy and crude oil prices at 0507 GMT

Contract          Month    Last  Change     Low    High  Volume
MY PALM OIL       SEP8     2211   +7.00    2208    2220     400
MY PALM OIL       OCT8     2228   +8.00    2225    2240    1370
MY PALM OIL       NOV8     2246   +8.00    2246    2260    5000
CHINA PALM OLEIN  JAN9     4940  +28.00    4908    5006  289858
CHINA SOYOIL      JAN9     5872   -4.00    5848    5938  391418
CBOT SOY OIL      DEC8    28.85   +0.28   28.72    28.9    5353
INDIA PALM OIL    AUG8   601.50   -0.30  601.20   602.2      24
INDIA SOYOIL      AUG8   737.95   +0.95   737.5  737.95     420
NYMEX CRUDE       SEP8    65.68   -0.23   65.60   65.95    2217

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 = RM4.1050)
(US$1 = 70.0900 Indian rupees)
(US$1 = 6.8740 Chinese yuan)