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NEWS ADMIN

DATE

11/08/2017

NEWS PROVIDER

Mohd Nasir Ismail

NEWS SOURCE

Reuters

CATEGORY

HEADLINE

VEGOILS-Palm Rises on Weaker Ringgit, Overnight Soyoil Gains
    * Market may shed gains on bearish industry regulator data-Trader

    * MPOB data released at midday break show stocks, output up in July

11/08/2017 (Reuters) - Malaysian palm oil futures rose in early trade on Thursday, supported by a weaker ringgit and overnight gains in soyoil on the Chicago Board of Trade.

Traders however expect prices to decline in the afternoon trading session on bearish stocks and production data from the industry regulator data, which was released at the market's midday break.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent to 2,637 ringgit ($614.40) at the midday break.

Traded volumes stood at 14,363 lots of 25 tonnes each at noon.

"The market was up on overnight U.S. soyoil and the weaker ringgit," said a futures trader from Kuala Lumpur. The ringgit, palm's currency of trade, fell against the dollar to its weakest level in nearly a month on Thursday morning.

It was last down 0.1 percent to 4.2920 per dollar. A weaker ringgit makes palm oil cheaper for holders of foreign currencies.  

The trader however said palm should see a decline in the afternoon session as data from the Malaysian Palm Oil Board showed stronger-than-forecast stockpiles and production levels.

Malaysia's palm oil stocks at end-July rose 16.8 percent to 1.78 million tonnes from the previous month, versus a Reuters poll which forecast a 6.5 percent rise in inventory levels.

Official data also showed July output rising 20.7 percent to 1.83 million tonnes, compared with a forecast for a 11 percent gain to 1.68 million tonnes.

In other related oils, the October soybean oil contract  on the Chicago Board of Trade, which gained 0.9 percent on Wednesday, was last down 0.4 percent on Wednesday.    

The January soybean oil on the Dalian Commodity Exchange  fell 0.4 percent, while the January palm olein contract  was also down 0.7 percent.
   
 Palm, soy and crude oil prices at 0537 GMT

 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       AUG7     2630    +2.00    2630   2640      40
 MY PALM OIL       SEP7     2631   +10.00    2627   2637    1422
 MY PALM OIL       OCT7     2637    +7.00    2634   2650    5691
 CHINA PALM OLEIN  JAN8     5372   -40.00    5340   5442  426654
 CHINA SOYOIL      JAN8     6260   -24.00    6230   6324  351146
 CBOT SOY OIL      DEC7    34.42    +0.12   34.39  34.65    4646
 INDIA PALM OIL    AUG7   482.80    -3.70  481.10    488     767
 INDIA SOYOIL      AUG7      637    -2.15     636  641.4    1930
 NYMEX CRUDE       SEP7    49.60    +0.04   49.49  49.69   23583

 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 = 4.2920 ringgit)
($1 = 63.9775 Indian rupees)
($1 = 6.6710 Chinese yuan)