KUALA LUMPUR: Malaysian palm oil futures rose on Monday, supported by strong gains in rival oilseed and crude oil prices.
The benchmark December contract on the Bursa Malaysia Derivatives exchange was up 0.8 percent at 2,406 ringgit ($546.8) a tonne at the midday break. The contract ended 1.1 percent down on Friday.
Prices had earlier reached a 15-month high of 2,460 ringgit last week after a rally that saw palm gain almost 20 percent last month.
"Future crude palm oil prices may attempt to recoup Friday's
losses in view of strong gains in rival oilseed and energy
fronts," said a trader based in Kuala Lumpur.
"However, the current strength in the ringgit and news from
the Malaysian Palm Oil Board to temporarily halt palm product
imports from Indonesia due to high stocks levels may hamper
market sentiment and keep gains checked."
Traded volume stood at 18,417 lots of 25 tonnes each, above
the average 13,500 lots usually traded by the end of the morning
session.
A weakening ringgit, the currency palm is traded in,
usually lends some support to palm prices. It has lost about 20
percent this year against the dollar, but strengthened 0.2
percent on Monday at noon.
On the technical front, palm oil is poised to break
resistance at 2,464 ringgit a tonne, as it could have completed
a correction triggered by this barrier, according to Wang Tao,
Reuters market analyst for commodities and energy technicals.
In competing vegetable oil markets, the U.S. December soyoil
contract rose 0.2 percent.
Crude oil futures rose on Monday after Russia announced it
was ready to meet other producers to discuss the situation in
the global market, where prices have more than halved since last
year on a supply glut.
Palm oil often takes direction from crude oil, as vegetable
oils are increasingly used in the making of renewable fuels.
Palm, soy and crude oil prices at 0529 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT5 2354 +35.00 2354 2360 30
MY PALM OIL NOV5 2363 +9.00 2363 2382 2263
MY PALM OIL DEC5 2406 +19.00 2399 2423 11795
CHINA PALM OLEIN JAN6 0 +0.00 0 0 0
CHINA SOYOIL JAN6 0 +0.00 0 0 0
CBOT SOY OIL DEC5 28.11 +2.90 27.91 28.24 3256
INDIA PALM OIL OCT5 427.50 +2.90 426.80 430.00 733
INDIA SOYOIL OCT5 615.05 +8.85 609.50 616.20 17595
NYMEX CRUDE NOV5 45.82 +0.28 45.21 45.95 12329
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 = 4.4000 ringgit)
($1 = 65.3000 Indian rupees)
($1 = 6.3559 Chinese yuan)
- Reuters
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