Palm opens higher on support from rival oils
By Dewi Kurniawati
JAKARTA, Jan 8 (Reuters) -Malaysian palm oil futures rose on Monday for a third straight session, supported by gains in rival Dalian and Chicago soyoil.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange climbed 10 ringgit, or 0.27%, to 3,692 ringgit ($794.66) a metric ton in morning trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 rose 0.65% and its palm oil contract DCPcv1 increased 1.17%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.36%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices dipped in early trade on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tensions in the Middle East.
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The Malaysian ringgit MYR=, palm's currency of trade, rose 0.15% against the U.S dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
* Palm oil may fall to 3,709 ringgit per ton, following its failure to break resistance at 3,793 ringgit, said Reuters technical analyst Wang Tao. TECH/C
MARKET NEWS
Asian share markets dawdled as investors braced for U.S. and Chinese inflation data, along with a corporate reporting season where robust results are needed to justify high stock valuations. MKTS/GLOB
DATA/EVENTS (GMT)
0700 Germany Industrial Orders MM Nov
0700 Germany Manufacturing O/P Cur Price SA Nov
0700 Germany Consumer Goods SA Nov
0745 France Reserve Assets Total Dec
1000 EU Unemployment Rate Nov
($1 = 4.6460 ringgit)
Reporting by Dewi Kurniawati; Editing by Subhranshu Sahu
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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