VEGOILS-Palm gains on improved rival oils, weaker ringgit
* Market up, tracking soyoil, weaker ringgit - traders
* Palm seen rising towards 2,374 rgt/T - technicals
(Updates latest prices)
By Emily Chow
KUALA LUMPUR, July 27 (Reuters) - Malaysian palm oil futures
notched up a second day of gains, tracking rival soyoil, while a
weaker ringgit also helped to prop up prices.
Benchmark palm oil futures for October delivery on
the Bursa Malaysia Derivatives Exchange rose 0.4 percent to
close at 2,318 ringgit ($569) per tonne on Wednesday.
Traded volumes stood at 44,591 lots of 25 tonnes each at the
end of trade, close to the 2015 average of 44,600.
Palm is down 1.9 percent so far this month, touching a one
week low of 2,253 ringgit on Tuesday, weighed down by weakness
in Chinese vegetable oils.
"Palm is tracking the external market, both Chicago Board of
Trade soy and Dalian," said a trader from Kuala Lumpur,
referring to palm and soyoil on China's Dalian Commodity
Exchange.
"Any interest from the Chinese side will translate to an
upcoming rise in demand ... Both soy and our market will be
pulled up by that."
The palm oil market has also been influenced by the
performance of Chicago soybean futures, which rose on
bargain-hunting after hitting a three-month low on Tuesday.
Malaysian palm oil exports rose about 15 percent during the
July 1-25 period versus a month earlier, led by gains in demand
from China and Europe, according to cargo surveyor data released
on Monday.
A weaker ringgit also lent support to palm's performance on
Wednesday, said traders, as it makes the vegetable oil cheaper
for foreign currency holders. The ringgit, palm oil's traded
currency, weakened 0.4 percent against the dollar to reach
4.0735 on Wednesday evening.
Palm oil is expected to rise to 2,374 ringgit per tonne as
it has broken a resistance at 2,302 ringgit, according to
technical analysis by Reuters market analyst Wang Tao.
In related vegetable oils, the Chicago soybean oil contract
for December rose 0.1 percent, while Dalian's January
soybean oil contract gained 0.3 percent. The January
palm olein contract was up by 1.5 percent.
Palm, soy and crude oil prices at 1032 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG6 2356 +4.00 2335 2378 724
MY PALM OIL SEP6 2334 +8.00 2306 2354 6532
MY PALM OIL OCT6 2318 +9.00 2288 2338 20513
CHINA PALM OLEIN JAN7 4950 +72.00 4906 4972 601798
CHINA SOYOIL JAN7 6084 +20.00 6072 6132 463556
CBOT SOY OIL DEC6 30.11 +0.05 30.08 30.4 7605
INDIA PALM OIL JUL6 522.10 +3.50 519.80 522.5 117
INDIA SOYOIL AUG6 628.35 -2.15 627.3 632.5 22970
NYMEX CRUDE SEP6 42.73 -0.19 42.51 42.96 61428
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 = 4.0735 ringgit)
($1 = 67.1850 Indian rupees)
($1 = 6.6695 Chinese yuan)
(Reporting by Emily Chow; Editing by Richard Pullin and Mark
Potter)