The Edge Markets (22/11/2017) - KUALA LUMPUR (Nov 22): Malaysian palm oil futures were trading higher in mid-session Wednesday, tracking overseas markets, but a strengthening ringgit kept gains in check.

The benchmark palm oil February contract on the Bursa Malaysia Derivatives Exchange was up 0.3% at 2,630 ringgit (US$638.19) a tonne during the midday break.
 
Traded volume stood at 17,150 lots of 25 tonnes each.

"Strength in competing oils is providing support to palm but continuous appreciation in the local currency could hamper the uptrend," a Kuala Lumpur-based futures trader said.

The most active soybean oil contract on the Chicago Board of Trade was up 0.1%, while Dalian Commodity Exchange soybean oil rose 0.4%. Dalian palm olein climbed 0.3%.

Movements of rival vegetable oils impact palm, as they compete for a share in the global market.

"Stronger overseas market supported palm early today, but the ringgit rally is capping the upside," said another trader from Kuala Lumpur.

News about India's decision to raise import tax on crude palm oil to 30%, from 15%, has been factored in, and market is now reacting to the ringgit movement, the trader added.

The ringgit has risen to 13-month highs, following positive domestic economic growth data. The currency was up 0.41% to 4.1210 against the dollar at midday. A stronger ringgit makes palm less attractive to buyers holding other currencies.

Earlier this week, the palm futures took a hit after India's announcement, suffering the largest one-day loss in eight months on Monday, and sliding to its weakest since Aug 16 on Tuesday.

On technicals, the palm oil third-month contract seemed to have stabilised around a support at 2,606 ringgit per tonne, Wang Tao, a Reuters commodities and energy market analyst said.

"It may hover around this level or bounce towards a resistance at 2,661 ringgit," he added.

Palm, soy and crude oil prices at 0438 GMT

 Contract                          Month      Last    Change         Low       High       Volume
 MY PALM OIL                 DEC7       2560    -20.00        2560       2586          354
 MY PALM OIL                 JAN8        2610    +10.00        2595       2613         2776
 MY PALM OIL                 FEB8       2630     +8.00        2615       2636         7067
 CHINA PALM OLEIN      JAN8       5424    +18.00        5402       5446       149378
 CHINA SOYOIL              JAN8       5918    +22.00        5908       5936       123568
 CBOT SOY OIL              DEC7       34.21     +0.04       34.12      34.24         1019
 INDIA PALM OIL            NOV7      583.50     -0.30      583.00      585.7           37
 INDIA SOYOIL               DEC7         32.1     -1.55       731.5     733.45          580
 NYMEX CRUDE            JAN8         57.70     +0.87       57.03      57.80        99113
 
  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