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NEWS ADMIN

DATE

16/05/2018

NEWS PROVIDER

Siti Safura Masiron

NEWS SOURCE

The Edge Markets MY

CATEGORY

HEADLINE

Palm oil extends gains on weaker ringgit

15.05.2018 (The Edge Markets MY) - KUALA LUMPUR (May 15): Malaysian palm oil futures rose on Tuesday evening for a second straight session of gains, supported by a weaker ringgit and slight strength in CBOT soyoil futures.

Weakness in the ringgit typically boosts demand by making the tropical oil cheaper for holders of foreign currencies. The ringgit weakened by 0.15% to 3.9540 per dollar at the end of the trading day.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at RM2,432 (US$615.07) a tonne at the close of trade.

Palm oil jumped nearly 3% to a one-month high in intraday trade on Monday, the first session of trade since the stunning election defeat of a coalition that ruled the country for six decades. It closed with a gain of 1.5%.

Trading volume stood at 49,160 lots of 25 tonnes each on Tuesday evening.

"The ringgit was still weak and a positive CBOT soyoil also lent a helping hand," said a futures trader in Kuala Lumpur.

The market rose despite reports of weaker exports of Malaysian palm oil products on Tuesday, traders said.

Exports for May 1-15 fell 14.9% from a month earlier, said inspection company AmSpec Agri Malaysia.

Cargo surveyor Societe Generale de Surveillance, meanwhile, reported a 13.7% drop for the same period.

Palm oil could retest resistance at RM2,466 a tonne, a break above which could lead to a gain to the next resistance at RM2,475, said Reuters market analyst for commodities and energy technicals, Wang Tao.

In related oils, the Chicago July soybean oil contract edged up by 0.1% while September soybean oil on China's Dalian Commodity Exchange was down 0.7%.

The Dalian September palm oil contract slipped by 0.2%.

Palm oil is affected by movements in rival edible oils competing for a share in the global vegetable oils market.

Palm, soy and crude oil prices at 1103 GMT

Contract          

Month   

Last 

Change    

Low  

High 

Volume

MY PALM OIL      

MAY8     

2374  

+4.00   

2374  

2374      

7

MY PALM OIL      

JUN8     

2425 

+18.00   

2402  

2435   

4021

MY PALM OIL      

JUL8     

2437 

+16.00   

2407  

2437  

18969

CHINA PALM OLEIN 

SEP8     

5074 

-12.00   

5066  

5104 

258780

CHINA SOYOIL     

SEP8     

5766 

-42.00   

5748  

5812 

323488

CBOT SOY OIL     

JUL8    

31.29  

+0.04  

31.17 

31.36   

4572

INDIA PALM OIL   

MAY8   

659.40  

+0.00 

656.00   

660    

568

INDIA SOYOIL     

MAY8    

758.3  

+0.20 

754.95 

759.5   

4070

NYMEX CRUDE      

JUN8    

71.60  

+0.64  

70.79 

71.69 

160597

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel

(US$1 = RM3.9540)
(US$1 = 67.8900 Indian rupees)
(US$1 = 6.3555 Chinese yuan)