Thursday, January 3, 2019

Palm hits 2-week high on weakness in ringgit.

Palm hits 2-week high on weakness in ringgit.   

KUALA LUMPUR (Jan 3): Malaysian palm oil futures were trading at a two-week high in early trade on Thursday boosted by a weaker ringgit, but a sharp decline in crude oil prices capped gains.
The ringgit, palm's currency of trade, weakened 0.1% against the dollar to 4.1400 around noon, making the vegetable oil cheaper for foreign buyers.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange had rose as much as 0.7% to RM2,181 before paring some gains. It was last up 0.1% at RM2,169 (US$523.91) a tonne at the midday break.
Trading volumes stood at 15,043 lots of 25 tonnes each at noon.
"The market had risen tracking gains in the Chicago Board of Trade and Dalian Commodity Exchange, and a weak ringgit, but weak crude oil weighed," said a Kuala Lumpur-based trader, referring to gains in related edible oils on the two exchanges.
While palm could be supported by rising demand following India reducing its palm oil import taxes, the trader said export data was yet to reflect that as the new ruling had been implemented this week.
India, the world's largest importer of edible oils, said on Monday it would lower the duty on crude palm oil imports to 40% from 44%, while a tax on refined oils was cut to 50% from 54%.
Malaysian shipments of refined palm oil, however, will be taxed at 45% compared with 54% earlier.
Oil prices slipped on Thursday amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 amid rising crude supplies globally.
In other related oils, the Chicago March soybean oil contract rose 0.4%, while the January soybean oil contract on the Dalian Commodity Exchange jumped 1.8%.
Meanwhile, the Dalian January palm oil contract gained 2.2%.
Palm oil prices are impacted by changes in soyoil prices, as they compete for a share in the global vegetable oil market.  
Palm, soy and crude oil prices at 0500 GMT:
Contract         Month   Last Change    Low   High Volume
MY PALM OIL      JAN9    2090 +20.00   2090   2090      3
MY PALM OIL      FEB9    2129  +1.00   2115   2143   1244
MY PALM OIL      MAR9    2169  +3.00   2155   2181   6372
CHINA PALM OLEIN JAN9    4188 +88.00   4100   4188   1732
CHINA SOYOIL     JAN9    4980 +88.00   4892   4980    200
CBOT SOY OIL     JAN9    27.9  +0.00  0025
INDIA PALM OIL   JAN9  527.00  +2.50 522.40  529.3    435
INDIA SOYOIL     JAN9     740  +0.15  738.8    742   2030
NYMEX CRUDE      FEB9   45.76  -0.78  45.39  46.35  59516
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = RM4.1400)
(US$1 = 70.4040 Indian rupees)
(US$1 = 6.8754 Chinese yuan)

Cred- theedgemarket

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