Palm charts third session of gains on stronger US soyoil

-A +A

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)