Palm rebounds on stronger rival Dalian oils, weaker ringgit
Updates midday prices and adds traders comments
KUALA LUMPUR, Dec 16 (Reuters) -Malaysian palm oil futures rebounded on Monday, following a recovery in rival Dalian oils and weakness in the ringgit.
The Bursa Malaysia Derivatives Exchange's benchmark contract FCPOc3 rose 0.23% to 4,827 ringgit ($1,082.77) a metric ton by the midday break. The contract fell more than 4% last week.
Crude palm oil futures opened lower but quickly recovered on bargain buying following the steadiness seen in competing oils, especially soy oil and rapeseed oil, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group.
"The weaker Malaysian ringgit and a strong recovery in rapeseed oil futures in Asian hours further helped the bullish sentiments in palm oil today," he said.
A Kuala Lumpur-based trader also said that the weakness in ringgit was lending support to palm prices.
The ringgit MYR=, palm's currency of trade, weakened 0.25% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
The Dalian Commodity Exchange's most-active soyoil contract DBYcv1 gained 0.13%, while its palm oil contract DCPcv1 added 0.97%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.35%. The rapeseed oil futures contract at the Zhengzhou Commodity Exchange rose 1.75%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Oil futures eased from their highest levels in weeks as traders took profit but the falls were limited due to concerns of supply disruptions in the event of more U.S. sanctions on major suppliers Russia and Iran. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for Dec. 1-15 fell 9.8% from a month earlier to 671,454 metric tons while AmSpec Agri Malaysia is expected to release its estimates later in the day.
Palm oil may consolidate in the range of 4,756 ringgit to 4,902 ringgit per ton for one or two days before breaking 4,756 ringgit and falling towards 4,626 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.4580 ringgit)
Reporting by Ashley Tang; Editing by Subhranshu Sahu and Varun H K
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