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MARKET DEVELOPMENT
VEGOILS-Palm Gains on Strong Export Data, Strength in Rival Oilseeds
calendar18-07-2017 | linkReuters | Share This Post:

* Stronger ringgit could limit palm's upside - trader
* Palm may rise to 2,577-2,591 rgt/tonne range - Techs

18/07/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Monday, supported by gains in rival oilseed soy and cargo surveyor data showing stronger export demand.

Shipments of Malaysian palm oil products during July 1-15 rose 17.8 percent from a month earlier, data released by cargo surveyor Intertek Testing Service on Saturday showed.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,554 ringgit ($595.27) at the midday break.

Traded volumes stood at 17,719 lots of 25 tonnes each.

"(Cargo surveyor) Exports data for July 1-15... was on the high side," said one futures trader from Kuala Lumpur, adding that the strength of the ringgit, the currency of trade for the vegetable oil, could limit palm's upside.

A stronger ringgit usually makes the tropical oil more expensive for buyers holding foreign currencies. The ringgit was last up 0.02 percent at 4.2900 per dollar.

The December soybean oil contract on the Chicago Board of Trade rose 0.1 percent, while the September soybean oil on the Dalian Commodity Exchange was up 0.9 percent.

In other related oils, the September palm olein contract gained 1.4 percent.

The palm oil October contract may rise into a range of 2,577-2,591 ringgit per tonne, according to Reuters market analyst for commodities and energy technicals Wang Tao. 

 Palm, soy and crude oil prices at 0506 GMT

 Contract              Month    Last   Change       Low     High     Volume
 MY PALM OIL          AUG7      2630    -7.00      2628     2648        581
 MY PALM OIL          SEP7      2572    +4.00      2571     2590       5738
 MY PALM OIL          OCT7      2554    +3.00      2552     2571       7844
 CHINA PALM OLEIN     SEP7      5476   +78.00      5410     5482     234824
 CHINA SOYOIL         SEP7      6108   +54.00      6060     6116     218984
 CBOT SOY OIL         DEC7     33.74    +0.00     33.63    33.86       3671
 INDIA PALM OIL       JUL7    484.00    +0.00    482.20    484.6         69
 INDIA SOYOIL         JUL7       637    -1.50       637    637.5         60
 NYMEX CRUDE          AUG7     46.66    +0.12     46.60    46.72      25414

 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

($1 = 4.2905 ringgit)
($1 = 64.3550 Indian rupees)
($1 = 6.7691 Chinese yuan)