VEGOILS-Palm rises to 2-week top on stronger demand, rival oil gains


VEGOILS-Palm rises to 2-week top on stronger demand, rival oil gains

* Palm climbs to high of 2,555 rgt/T

* Malaysian shipments rise 4-5 pct during Feb. 1-25 – ITS, SGS

* Ringgit gains may cap palm’s upside – Trader (Updates with closing prices)

By Emily Chow

KUALA LUMPUR, Feb 26 (Reuters) – Malaysian palm oil futures hit a two-week high on Monday evening, recording a second straight session of gains, as rising demand for palm and gains in rival oilseeds supported the market.

The benchmark palm oil contract for May delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,540 ringgit ($651.12) a tonne at the close of trade. It earlier rose to 2,555 ringgit, matching palm’s highest levels reached on Feb. 12.

Trading volumes stood at 44,696 lots of 25 tonnes each at the end of the trading day.

“The market rose on higher export figures,” said a futures trader in Singapore. “We’re hearing that there is demand from India this month and next month.”

Another trader in Kuala Lumpur added that palm oil was up tracking gains in competing oils, such as soyoil on China’s Dalian Commodity Exchange and the U.S. Chicago Board of Trade.

“Appreciation in the local currency may, however, slow down upside momentum,” he added, referring to a stronger ringgit MYR= on Monday morning.

Gains in the ringgit, palm oil’s currency of trade, typically makes the tropical oil more expensive for foreign buyers, limiting demand.

The ringgit rose 0.2 percent against the dollar on Monday afternoon at 3.9090.

Malaysian palm oil shipments have also been rising in February compared to the previous month. Exports were up 5 percent in the Feb. 1-25 period versus the corresponding period in January, according to data from cargo surveyor Intertek Testing Services on Monday. PALM/ITS

Another cargo surveyor, Societe Generale (PA:) de Surveillance, reported a 4.3 percent gain for the same time period. PALM/SGS

In other related oils, the Chicago Board of Trade’s March soybean oil contract BOH8 rose 0.3 percent, while the May soybean oil on China’s Dalian Commodity Exchange DBYK8 rose 1.3 percent.

The Dalian May palm oil contract DCPK8 was up 1.5 percent.

Palm oil prices are impacted by rival edible oils as they compete for a share in the global vegetable oils market.

Palm, soy and prices as of 1136 GMT Contract

Month

Last Change

Low

High Volume MY PALM OIL

MAR8

2551 +15.00

2545

2573

1048 MY PALM OIL

APR8

2552 +20.00

2539

2565

7618 MY PALM OIL

MAY8

2540 +17.00

2531

2555 19910 CHINA PALM OLEIN MAY8

5288 +78.00

5226

5290 286534 CHINA SOYOIL

MAY8

5784 +72.00

5716

5798 282168 CBOT SOY OIL

MAY8

32.67 +0.10 32.56 32.82 13216 INDIA PALM OIL

FEB8 586.00 +2.30 582.50 586.3

926 INDIA SOYOIL

MAR8

753 -0.75 750.7

756 11380 NYMEX CRUDE

APR8

63.47 -0.08 63.33 63.90 104656 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 = 3.9010 ringgit) ($1 = 64.7900 Indian rupees) ($1 = 6.3060 Chinese yuan)

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