* Malaysia's August palm stocks seen at 1.73 mln T - Reuters poll
* Malaysia's August stocks, output data due next week
* Palm oil to fall to 2,352 ringgit - technicals
(Releads, updates throughout)
By Chew Yee Kiat
SINGAPORE, Sept 5 (Reuters) - Malaysian palm oil futures ended higher on
Thursday, erasing earlier losses as a weakening ringgit triggered buying
interest, although bearish sentiment persisted after a U.S. Department of
Agriculture report showed damage to soy crop was not worse than expected.
Tuesday's report helped ease some fears about dry weather damaging soy
yields in the U.S. crop belt, while investors were also cautious ahead of key
data due next week.
Palm oil tracks soy prices as it is a substitute for soybean oil.
But traders said a weaker ringgit attracted some buyers, as it makes
the feedstock cheaper. The local currency lost 0.7 percent of its value against
the greenback on Tuesday.
"We see some rebound in the afternoon trading session, and it's most
probably driven by the weaker ringgit. Overall, it still remains to be seen if
prices can sustain above the 2,400 ringgit level," said a trader with a foreign
commodities brokerage in Kuala Lumpur.
The benchmark November contract on the Bursa Malaysia Derivatives
Exchange edged up 0.5 percent higher to close at 2,410 ringgit ($730) per tonne,
after trading in a range of 2,385 to 2,418 ringgit.
Total traded volume was thin at 23,779 lots of 25 tonnes each, compared with
the average 35,000 lots, as most investors stayed on the sidelines ahead of the
Sept. 1-10 export numbers and official data from the Malaysian Palm Oil Board
(MPOB) due next week on August stocks and output.
Malaysia's August palm oil stocks likely grew to their largest level in
three months as output outweighed exports, a Reuters survey showed, although
healthy demand for the tropical oil kept stockpiles in check.
Technicals showed a bearish target at 2,352 ringgit per tonne remains
unchanged for Malaysian palm oil, as it has broken below support at 2,403
ringgit, according to Reuters market analyst Wang Tao.
In other markets, global oil prices held above $115 a barrel on Thursday
after U.S. President Barack Obama won some support from lawmakers for a military
strike on Syria, adding to concerns that Middle East supply disruptions will
In vegetable oil markets, the U.S. soyoil contract for December fell
0.3 percent in late Asian trade. The most-active January soybean oil contract
on the Dalian Commodities Exchange eased 0.1 percent.
Palm, soy and crude oil prices at 1007 GMT
Contract Month Last Change Low High Volume
MY PALM OIL SEP3 2400 +1.00 2390 2404 146
MY PALM OIL OCT3 2415 +13.00 2391 2419 1248
MY PALM OIL NOV3 2410 +12.00 2385 2418 12870
CHINA PALM OLEIN JAN4 5570 -10.00 5556 5620 363864
CHINA SOYOIL JAN4 7188 -8.00 7162 7228 540330
CBOT SOY OIL DEC3 43.80 -0.13 43.68 44.10 5809
NYMEX CRUDE OCT3 107.83 +0.59 107.13 108.04 14473
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
Crude in U.S. dollars per barrel
($1=3.30 Malaysian ringgit)
(Editing by Prateek Chatterjee)
- Commodity Markets
- USA News
- soybean oil
- Malaysian ringgit
- Palm oil