Palm gains on stronger soyoil, weaker ringgit

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KUALA LUMPUR (June 17): Malaysian palm oil futures rose in first-half trade on Monday, buoyed by gains in US soyoil on the Chicago Board of Trade (CBOT) overnight and a softer ringgit.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.6% at RM2,031 (US$486.58) per tonne at the midday break.

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

Cargo surveyor Intertek Testing Services said 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.  

"Palm is firm following the related vegetable oil markets and also a weaker ringgit," said a Kuala Lumpur-based futures trader.

A weaker ringgit makes palm oil more attractive to buyers holding foreign currencies. The Malaysian currency fell 0.22% against the US dollar.

The Chicago July soybean oil contract edged up 0.8%, reversing most of the previous session's losses.

In other related oils, the September soyoil contract on the Dalian Commodity Exchange fell 0.04% and the Dalian September palm oil contract was down 0.6%.

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 0445 GMT

Contract          Month    Last  Change     Low   High  Volume
MY PALM OIL       JUL9     2019  +17.00    1993   2020     446
MY PALM OIL       AUG9     2026  +17.00    1996   2026    5484
MY PALM OIL       SEP9     2031  +13.00    2002   2032    8394
CHINA PALM OLEIN  SEP9     4364  -26.00    4358   4390  268106
CHINA SOYOIL      SEP9     5484   -2.00    5462   5504  239086
CBOT SOY OIL      JUL9    27.85   +0.24   27.74  27.92    4709
INDIA PALM OIL    JUN9   509.20   +2.90  505.40  511.5     193
INDIA SOYOIL      JUN9    758.9   +1.40     757    759     610
NYMEX CRUDE       JUL9    52.56   +0.05   52.26  52.74   35688

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 = 69.8710 Indian rupees)
(US$1 = 6.9237 Chinese yuan)
(US$1 = RM4.1740)