VEGOILS-Palm oil tracks Dalian higher; set to rise for third week
SINGAPORE, July 14 (Reuters) – Malaysian palm oil futures rose more than 1% on Friday, and were set for a third consecutive weekly gain, as the strength in rival edible oils prevailed over a skyrocketing ringgit.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange climbed 48 ringgit, or 1.27%, to 3,914 ringgit ($864.40) a metric ton during early trade.
FUNDAMENTALS
* Indonesia is planning to set its crude palm oil (CPO) reference price at $791.02 per metric ton for July 16-31, senior economic ministry official Musdhalifah Machmud said on Wednesday, up from $747.23 per tonne in July 1-15.
* The U.S. Department of Agriculture said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.
* Dalian’s most-active soyoil contract DBYcv1 jumped 2%, while its palm oil contract DCPcv1 hiked 2.1%. Soyoil prices on the Chicago Board of Trade BOcv1 inched up 0.2%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The Malaysian ringgit MYR=, palm’s currency of trade, appreciated 1.29% against the dollar and hit its highest level since May 18 earlier in the session. A stronger ringgit makes palm oil less attractive for foreign currency holders.
MARKET NEWS
* Asian stocks rose on Friday, on course for their best week this year, as a cooling in U.S. inflation stoked speculation that the Federal Reserve could pause rate hikes after this month. MKTS/GLOB
DATA/EVENTS (GMT)
0900 EU Total Trade Balance SA May
1230 US Import Prices YY June
1400 US U Mich Sentiment Prelim July
($1 = 4.5280 ringgit)
(Reporting by Carman Chew; Editing by Savio D’Souza)
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