(Refiled to add missing palm kernel oil price)
* Palm gains after two sessions of losses
* Supported by weak ringgit, short covering ahead of market
decline expectations -traders
By Emily Chow
KUALA LUMPUR, April 26 (Reuters) – Malaysian palm oil
futures rose on Tuesday, up from a one-week low touched in the
previous session, supported by a decline in the ringgit
against the dollar.
A weaker ringgit lent support to palm but earlier gains were
limited due to higher production and slowing exports, said a
trader based in Kuala Lumpur.
The market later strengthened in the evening as some traders
covered short positions despite expectations that sluggish
demand would eventually weigh on prices, a dealer said.
The palm oil contract for July delivery on the
Bursa Malaysia Derivatives Exchange gained 0.8 percent at 2,675
ringgit ($ 682) per tonne at the end of the trading day. It
earlier fell for two consecutive days, seeing its sharpest
decline since March 2 on Friday.
Traded volumes were 51,121 lots of 25 tonnes each, higher
than a 2015 daily average of 44,600.
Malaysia’s ringgit, the currency palm oil is traded in, fell
0.5 percent to the dollar on Tuesday, making the vegetable oil
cheaper for holders of foreign currencies.
The ringgit fell to a one week low of 3.9495 per dollar
before rising to trade around 3.9200 in the evening, following
news of state investment fund 1Malaysia Development Berhad
defaulting on a bond interest payment.
Slower shipments of Malaysian palm oil products are seen
capping gains in benchmark prices after they registered flat to
little growth in April 1-25 from a month earlier, cargo surveyor
data shows.
Palm oil may rise to 2,697 ringgit per tonne, as it has
found a support around 2,650 ringgit, said Wang Tao, a Reuters
market analyst for commodities and energy technicals.
In competing oils, the September soybean oil contract
on the Dalian Commodity Exchange fell 0.2 percent,
while the May Chicago Board of Trade soyoil contract
gained 0.2 percent.
The offer price for crude palm kernel oil stood at 4877.71
ringgit per tonne (PKO-MYSTH-M1) on Tuesday evening, according
to price assessments by Thomson Reuters.
Palm, soy and crude oil prices at 1037 GMT:
Contract Month Last Change Low High Volume
MY PALM OIL MAY6 2651 +19.00 2632 2656 500
MY PALM OIL JUN6 2676 +21.00 2648 2677 3350
MY PALM OIL JUL6 2675 +20.00 2648 2677 23943
CHINA PALM OLEIN SEP6 5662 -52.00 5616 5738 1052916
CHINA SOYOIL SEP6 6296 -12.00 6250 6372 801950
CBOT SOY OIL JUL6 34.25 +0.50 34.11 34.48 11362
INDIA PALM OIL APR6 567.20 +0.50 563.00 568 1158
INDIA SOYOIL MAY6 665 -4.65 663.5 671.2 45890
NYMEX CRUDE JUN6 42.99 +0.35 42.50 43.16 95456
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 = 3.9200 ringgit)
($ 1 = 66.5000 Indian rupees)
($ 1 = 6.4930 Chinese yuan)
(Reporting by Emily Chow; Editing by Anupama Dwivedi, Greg
Mahlich)
