Palm oil reverses losses on weaker ringgit, technical buying
Updates midday prices and adds trader's comment
KUALA LUMPUR, Oct 28 (Reuters) -Malaysian palm oil futures inched higher on Monday, as a weaker ringgit and technical buying supported the market.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 14 ringgit, or 0.31%, to 4,550 ringgit ($1,044.30) a metric ton during the midday break.
The crude palm oil futures market recovered from early losses to close higher at the midday as it was supported by technical buying and a weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit MYR=, palm's currency of trade, weakened 0.46% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian's most-active soyoil contract DBYcv1 fell 1.66%, while its palm oil contract DCPcv1 lost 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 2.47%.
Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
Oil prices tumbled more than $3 a barrel after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
($1 = 4.3570 ringgit)
Reporting by Ashley Tang; Editing by Subhranshu Sahu and Rashmi Aich
For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E
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