Palm climbs tracking soy, helped by weak ringgit

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KUALA LUMPUR (June 17): Malaysian palm oil futures rose on Monday, shadowing higher U.S. soyoil prices on the Chicago Board of Trade (CBOT), while a softer ringgit also supported.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.8% at 2,035 ringgit (US$487.19) per tonne at the day's close.

Palm oil fell last week on weaker soyoil prices and worries of slowing export demand.

Cargo surveyor Intertek Testing Services said on Saturday that Malaysian palm oil products for June 1-15 dropped 22.5% from a month earlier, while independent inspection company AmSpec Agri Malaysia saw an 18.9% decline in the same period.

On Monday, cargo surveyor Societe Generale de Surveillance said exports fell 15.3% for the same period.

"Palm is tracking soybean for leads as low exports have been factored in," another trader said.

A weaker ringgit also makes palm oil more attractive to buyers holding foreign currencies. The Malaysian currency fell 0.29% against the U.S. dollar.

Weaker output data added support for palm, a trader said.

The Chicago July soybean oil contract edged up 1.7%, reversing most of the previous session's losses.

In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.5%, while the Dalian September palm oil contract was down 0.4%.

Palm oil prices are affected by movements in related edible oils, as they compete for a share in the global vegetable oil market.    
                
 Palm, soy and crude oil prices at 1031 GMT

Contract Month Last Change Low High Volume
MY PALM OIL JUL9 2024 +22.00 1993 2026 1185
MY PALM OIL AUG9 2032 +23.00 1996 2034 11692
MY PALM OIL SEP9 2035 +17.00 2002 2038 18978
CHINA PALM OLEIN SEP9 4372 -18.00 4358 4390 392254
CHINA SOYOIL SEP9 5514 +28.00 5462 5518 361136
CBOT SOY OIL JUL9 28.05 +0.44 27.74 28.14 8590
INDIA PALM OIL JUN9 511.60 +5.30 505.40 513.8 834
INDIA SOYOIL JUN9 759 +1.50 757 760.8 3940
NYMEX CRUDE JUL9 52.21 -0.30 52.07 52.74 94190

  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 = 69.8710 Indian rupees)
(US$1 = 6.9237 Chinese yuan)
(US$1 = 4.1770 ringgit)