VEGOILS-Palm hits two-month high on stronger related oils, weaker ringgit
* Palm oil rises to high of 2,095 rgt/T
* Ringgit falls to weakest in 7 weeks
* Palm may rise to 2,113 rgt/T – techs (Updates with closing prices)
By Emily Chow
KUALA LUMPUR, Aug 5 (Reuters) – Malaysian palm oil futures rose over 1% on Monday evening, hitting the highest in two months on the back of strength in related edible oils and a weaker ringgit .
The benchmark palm oil contract for October delivery FCPOc3 on the Bursa Malaysia Derivatives Exchange rose 1.5% to 2,093 ringgit ($501.08) per tonne at the close of trade.
It earlier rose by as much as 1.6% to 2,095 ringgit, matching the intraday highs reached on May 30. POI/
Palm oil may rise to 2,113 ringgit per tonne, as it has cleared a resistance range of 2,076-2,083 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. oil’s gains were attributed to Friday’s surge in U.S. soyoil futures on the Chicago Board of Trade, and current gains in related edible oils on China’s Dalian Commodity Exchange.
U.S. soyoil futures on the CBOT BOc2 gained nearly 2% on Friday, but were last down 0.7% as of 1050 GMT. The September soyoil contract on the Dalian exchange DBYU9 rose 2.3% and the Dalian September palm oil contract DCPU9 gained 1.9%.
Chicago soybean futures lost ground on Monday, falling for four out of five sessions, as an escalating trade war between Washington and Beijing caused headwinds to the market. GRA/
Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.
The ringgit, palm’s currency of trade, eased 0.5% against the dollar to 4.1770 on Monday evening, its weakest levels in seven weeks.
A weaker ringgit typically makes palm oil cheaper for holders of foreign currencies.
Meanwhile, a Reuters poll forecast that Malaysian palm oil stockpiles likely rose for the first time in five months, edging up to a three-month high, as production gains outpaced a rise in exports. are forecast to have gained 1.8% from the previous month to 2.47 million tonnes at end-July, while output would rise 11.4% to 1.69 million tonnes, its highest since January and the biggest monthly gain in 10 months.
Exports were seen rising 3.8% from June to 1.44 million tonnes in July.
Official data from the Malaysian Palm Oil Board is scheduled for release on Aug. 13 after 0430 GMT.
Palm, soy and prices at 1050 GMT
Low High Volume MY PALM OIL
20 MY PALM OIL
3301 MY PALM OIL
2078 2095 11991 CHINA PALM OLEIN SEP9
4372 4456 420238 CHINA SOYOIL
5558 5690 389934 CBOT SOY OIL
-0.20 28.05 28.29
1216 INDIA PALM OIL
1245 INDIA SOYOIL
+3.55 737.5 741.2 11620 NYMEX CRUDE
-0.46 54.68 55.53 165631 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 = 4.1770 ringgit) ($1 = 70.4900 Indian rupees) ($1 = 7.0339 Chinese yuan)