VEGOILS-Palm oil climbs on gains in rival oils, weaker ringgit
SINGAPORE, Oct 26 (Reuters) – Malaysian palm oil futures rose for a second consecutive session on Thursday, underpinned by a softer ringgit and strength in rival edible oils, although lacklustre local exports limited the gains.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 45 ringgit, or 1.2%, to 3,724 ringgit ($778.27) a metric ton at the midday break.
The Malaysian ringgit MYR=, palm’s currency of trade, weakened 0.2% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Palm oil futures are showing an upward trajectory, driven by the strong momentum in soyoil prices on the Chicago Board of Trade during the overnight and Asian trading sessions, as well as a rebound in Chinese vegetable oil amid anticipation of a fiscal stimulus package, said Anilkumar Bagani, commodity research head of Sunvin Group India.
China is set to unleash fresh fiscal stimulus to shore up its economic recovery, drawing on a well-used playbook that relies heavily on debt and state spending.
Dalian’s most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 was up 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.8%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Oct. 1-Oct. 25 were estimated to have fallen between 1.1% and 3.1% from a month earlier, data from independent inspection company AmSpec Agri Malaysia and Intertek Testing Services showed on Wednesday.
Crude oil prices fell on Thursday after a rise in U.S. crude stockpiles and gain in the dollar index, giving up some ground from a day earlier when prices jumped on Middle East tensions. O/R
($1 = 4.7850 ringgit)
(Reporting by Ashley Fang; Editing by Mrigank Dhaniwala)
((ashley.fang@thomsonreuters.com;))
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