MARKET DEVELOPMENT
VEGOILS-Palm Rebounds on Stronger Soy, Crude Oil Prices
VEGOILS-Palm Rebounds on Stronger Soy, Crude Oil Prices
* Palm in line for first gain in three sessions
* Market also up on weaker ringgit - trader
27/09/2017 (Reuters) - Malaysian palm oil futures rose on Tuesday, recovering from more than 2 percent losses in the previous two sessions, as it tracked gains in global crude oil prices and rival oilseed soy on the Chicago Board of Trade.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 0.9 percent to 2,715 ringgit ($645.97) a tonne at the midday break, its best intraday percentage gain in nearly two weeks.
Traded volumes stood at 17,004 lots of 25 tonnes each at noon.
"We're seeing some short covering today... There is also stronger crude oil prices," said a futures trader from Kuala Lumpur.
Oil prices extended gains on Tuesday, with Brent crude hitting a 26-month high, supported by Turkey's threat to cut crude flows from Iraq's Kurdistan region to the outside world.
Palm is impacted by movements in crude oil, as the tropical oil is used as feedstock for producing biodiesel, a fuel substitute.
A weaker ringgit also provided some support, the trader said.
The ringgit, the currency palm oil is traded in, fell as much as 0.2 percent in early trade to 4.2100, its weakest since Sept. 7. Weakeness in the ringgit makes palm oil cheaper for holders of foreign currencies.
The October soybean oil contract on the Chicago Board of Trade was up 0.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange fell 0.3 percent.
The price direction of related edible oils including soy affects palm oil, as they compete for a share of the global vegetable oils market.
In other related oils, the January palm olein contract dropped 0.2 percent.
Palm, soy and crude oil prices at 0452 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2725 +10.00 2723 2726 95
MY PALM OIL NOV7 2711 +21.00 2696 2714 1724
MY PALM OIL DEC7 2715 +24.00 2699 2718 9749
CHINA PALM OLEIN JAN8 5610 -16.00 5574 5620 238644
CHINA SOYOIL JAN8 6186 -20.00 6172 6202 170056
CBOT SOY OIL DEC7 34.08 +0.08 34.02 34.1 3008
INDIA PALM OIL SEP7 545.60 +2.10 545.10 547.8 46
INDIA SOYOIL OCT7 677.85 +0.95 676 679 1470
NYMEX CRUDE NOV7 52.32 +0.10 52.06 52.43 35938
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 = 4.2030 ringgit)
($1 = 65.2275 Indian rupees)
($1 = 6.6125 Chinese yuan)
* Market also up on weaker ringgit - trader
27/09/2017 (Reuters) - Malaysian palm oil futures rose on Tuesday, recovering from more than 2 percent losses in the previous two sessions, as it tracked gains in global crude oil prices and rival oilseed soy on the Chicago Board of Trade.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 0.9 percent to 2,715 ringgit ($645.97) a tonne at the midday break, its best intraday percentage gain in nearly two weeks.
Traded volumes stood at 17,004 lots of 25 tonnes each at noon.
"We're seeing some short covering today... There is also stronger crude oil prices," said a futures trader from Kuala Lumpur.
Oil prices extended gains on Tuesday, with Brent crude hitting a 26-month high, supported by Turkey's threat to cut crude flows from Iraq's Kurdistan region to the outside world.
Palm is impacted by movements in crude oil, as the tropical oil is used as feedstock for producing biodiesel, a fuel substitute.
A weaker ringgit also provided some support, the trader said.
The ringgit, the currency palm oil is traded in, fell as much as 0.2 percent in early trade to 4.2100, its weakest since Sept. 7. Weakeness in the ringgit makes palm oil cheaper for holders of foreign currencies.
The October soybean oil contract on the Chicago Board of Trade was up 0.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange fell 0.3 percent.
The price direction of related edible oils including soy affects palm oil, as they compete for a share of the global vegetable oils market.
In other related oils, the January palm olein contract dropped 0.2 percent.
Palm, soy and crude oil prices at 0452 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT7 2725 +10.00 2723 2726 95
MY PALM OIL NOV7 2711 +21.00 2696 2714 1724
MY PALM OIL DEC7 2715 +24.00 2699 2718 9749
CHINA PALM OLEIN JAN8 5610 -16.00 5574 5620 238644
CHINA SOYOIL JAN8 6186 -20.00 6172 6202 170056
CBOT SOY OIL DEC7 34.08 +0.08 34.02 34.1 3008
INDIA PALM OIL SEP7 545.60 +2.10 545.10 547.8 46
INDIA SOYOIL OCT7 677.85 +0.95 676 679 1470
NYMEX CRUDE NOV7 52.32 +0.10 52.06 52.43 35938
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 = 4.2030 ringgit)
($1 = 65.2275 Indian rupees)
($1 = 6.6125 Chinese yuan)