KUALA LUMPUR (Aug 20): Malaysian palm oil futures rose for a third straight session on Monday, touching a one-week high on support from U.S. 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 0.7% at 2,254 ringgit (US$549.09) a tonne at the close of trade. Earlier in the session, it rose to 2,260 ringgit, matching an intraday high hit on Aug 10.
Trading volumes stood at 28,540 lots of 25 tonnes each on Monday evening.
"External markets have been steady, lending support to palm," said a futures trader in Kuala Lumpur, adding appreciation in the ringgit may cap gains.
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 strengthened by 0.2% to 4.0990 against the dollar by the end of the trading day, after six consecutive sessions of declines.
Chicago soybean and soyoil prices rose over 1% each on Monday, with traders expecting China to resume purchases of U.S. cargoes, after planned talks between the two nations.
The Chicago December soybean oil contract was up 1% and the January soybean oil contract on China's Dalian Commodity Exchange was trading flat. The Dalian January palm oil contract edged up 0.7%.
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 2,269-2,277 ringgit per tonne, as it has cleared resistance at 2,240 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Palm, soy and crude oil prices at 1034 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP8 2215 +11.00 2205 2220 777
MY PALM OIL OCT8 2235 +15.00 2224 2240 3821
MY PALM OIL NOV8 2254 +16.00 2244 2260 13836
CHINA PALM OLEIN JAN9 4944 +32.00 4908 5006 350294
CHINA SOYOIL JAN9 5876 +0.00 5848 5938 474976
CBOT SOY OIL DEC8 28.83 +0.27 28.72 28.91 9272
INDIA PALM OIL AUG8 603.00 +1.20 601.20 604.4 508
INDIA SOYOIL AUG8 737.7 +0.70 737.5 738.45 1990
NYMEX CRUDE SEP8 65.67 -0.24 65.59 66.10 8605
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 = 4.1050 ringgit)
(US$1 = 70.0900 Indian rupees)
(US$1 = 6.8740 Chinese yuan)