MUMBAI: Malaysian palm oil futures jumped on Monday to their highest in a week tracking gains in rival soyoil, although firmness in ringgit capped the upside.The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 1.32 percent at 2,540 ringgit ($621.33) per tonne by midday. Palm earlier rose to 2,543 ringgit, the highest since Feb. 29.
"Palm oil has been getting good support from a rebound in crude oil and soyoil prices," said a Kuala Lumpur-based trader.
"The strengthening Malaysian ringgit is limiting the upside."
The Malaysian currency firmed 0.5 percent versus the dollar, making the tropical oil which is priced in the ringgit expensive for holders of other currencies.
Traded volume stood at 8,294 lots of 25 tonnes each, significantly below the roughly 13,500 lots usually traded by midday.
"Volumes were thin since people want to know what key
analysts and producers say in the conference," said the trader,
referring to the Palm and Lauric Oils Outlook Conference in
Kuala Lumpur from March 7 to 9.
Palm oil may break a resistance at 2,538 ringgit per tonne,
and rise into a range of 2,559-2,580 ringgit, said Wang Tao,
Reuters market analyst for commodities and energy technicals.
In competing vegetable oil markets, the May soybean oil
contract on the Dalian Commodity Exchange rose 1.41
percent, while the Chicago soyoil contract rose 0.55
Oil prices jumped on Monday, extending a rally that has
lifted crude benchmarks by more than a third from this year's
lows, as tightening supply and an improving global outlook
strengthened the sentiment for a market recovery.
"Rebound in crude oil can help palm oil producing countries
like Indonesia in increasing biofuel usage," said another Kuala
Palm, soy and crude oil prices at 0553 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAR6 0 +0.00 0 0 0
MY PALM OIL APR6 2526 +33.00 2513 2526 102
MY PALM OIL MAY6 2540 +33.00 2520 2543 6339
CHINA PALM OLEIN MAY6 5120 +100.00 5008 5168 1130666
CHINA SOYOIL MAY6 5732 +76.00 5660 5760 458118
CBOT SOY OIL MAY6 31.16 +0.00 30.89 31.20 5195
INDIA PALM OIL MAR6 0.00 +0.00 0.00 0.00 0
INDIA SOYOIL MAR6 0.00 +0.00 0.00 0.00 0
NYMEX CRUDE APR6 36.60 +0.68 36.18 36.72 25921
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 = 4.0880 ringgit)