Palm recovers from 4 sessions of losses, tracking soyoil strength

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KUALA LUMPUR (Dec 27): Malaysian palm oil futures rose about 1% on Thursday after four straight sessions of sharp falls, supported by gains in US soyoil on the Chicago Board of Trade (CBOT) and global stock markets.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.9% at RM2,113 (US$506.11) a tonne at the midday break. Earlier in the session, it climbed as much as 1.7% to RM2,129.

Trading volumes stood at 7,163 lots of 25 tonnes each at the midday break.

"Palm is borrowing support from the recovery in rival oilseed," said a Kuala Lumpur-based futures trader, referring to CBOT soyoil.

The rally in global stock markets also contributed to palm's gains, said another palm oil trader.  

Asian shares on Thursday rode a dramatic surge on Wall Street as markets, hammered by a recent drum roll of deepening political and economic gloom, cheered upbeat US data and the Trump administration's effort to shore up investor confidence.

US stocks soared on Wednesday with the Dow Jones Industrial Average rocketing more than 1,000 points for the first time.

In other related oils, the Chicago January soybean oil contract was up 0.4%, while the January soybean oil contract on the Dalian Commodity Exchange edged up 0.04%.

Meanwhile, the Dalian January palm oil contract declined 0.4%.

Palm oil prices are impacted by changes in soyoil prices, as they compete for a share in the global vegetable oil market.  

Palm, soy and crude oil prices at 0435 GMT:

Contract          Month   Last   Change     Low    High  Volume
MY PALM OIL       JAN9    2022    +5.00    2022    2039      52
MY PALM OIL       FEB9    2071   +20.00    2062    2084     747
MY PALM OIL       MAR9    2113   +19.00    2104    2129    6167
CHINA PALM OLEIN  JAN9    4048   -16.00    4044    4084   10330
CHINA SOYOIL      JAN9    4928    +2.00    4906    4940   15532
CBOT SOY OIL      JAN9   27.47    +0.11   27.44   27.51    1073
INDIA PALM OIL    DEC8    0.00    +0.00    0.00 0 0
INDIA SOYOIL      JAN9       0    +0.00  0 0 0
NYMEX CRUDE       FEB9   46.05    -0.17   45.67   46.70   46030

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 = RM4.1750)
(US$1 = 70.2060 Indian rupees)
(US$1 = 6.8910 Chinese yuan)