Palm gains on stronger rival oils, weaker ringgit
KUALA LUMPUR, Nov 26 (Reuters) -Malaysian palm oil futures rose on Tuesday, supported by stronger rival vegetable oils and a weaker ringgit.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 0.49%, to 4,722 ringgit ($1,058.27) a metric ton in early trade.
The contract rose 1.23% on Monday after three consecutive sessions of losses.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 gained 1.56%. Soyoil prices on the Chicago Board of Trade BOcv1 added 2.95%.
* Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
* The ringgit MYR=, palm's currency of trade, weakened 0.36% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
* Oil prices slipped in early trade, extending declines from the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil's risk premium. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Rapeseed and mustard planting in India will likely drop as above-average temperatures during the sowing season prompted farmers to switch to crops less affected by heat but offer equally good returns, industry officials told Reuters.
* Lower production of India's main winter-sown oilseed crop could force the country to increase expensive overseas purchases of cooking oils, such as palm oil, soyoil and sunflower oil, to meet rising demand.
* Palm oil may break support at 4,647 ringgit per metric ton, and fall into 4,510 ringgit to 4,553 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* The dollar rallied against major peers on Tuesday after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico and additional tariffs on China. MKTS/GLOB
DATA/EVENTS
1500 US Consumer Confidence Nov
1500 US New Home Sales-Units Oct
($1 = 4.4620 ringgit)
Reporting by Ashley Tang; Editing by Sumana Nandy
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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