* Palm in line for 3rd day of gains
* Higher exports, weaker output growth in May supported market – trader
* Palm oil may test resistance at 2,034 ringgit/T – techs (Updates with midday prices, quote)
By Emily Chow
KUALA LUMPUR, May 15 (Reuters) – Malaysian palm oil futures climbed to a one-week top in early trade on Wednesday, in line to chart a third consecutive day of gain, as it tracked an increase in U.S. soyoil on the Chicago Board of Trade (CBOT) and a weaker ringgit .
The ringgit, palm’s currency of trade, on Wednesday, eased to its weakest levels against the dollar since end-December. It was last down 0.1% to 4.1720. A weaker ringgit supports palm oil by making it cheaper for foreign buyers.
Benchmark palm oil contract for July delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 1.4% at 2,043 ringgit ($489.69) a tonne at the midday break on Wednesday, its strongest levels since May 8.
“The market is tracking the overnight recovery in CBOT and further weakness in the ringgit today extended the technical pullback,” said a Kuala Lumpur-based futures trader.
“Expectations of higher exports and negative growth for production also added strength to the market.”
Malaysian palm oil shipments rose for May 1-15, up 14.4% from the corresponding period last month, data from cargo surveyor Amspec Agri Malaysia showed. PALM/AAM
Palm oil output in May is also expected to see declines or smaller monthly growth from April. Data from the Malaysian Palm Oil Board last Friday showed April output fell 1.4% from the previous month to 1.65 million tonnes. However, it is the highest for the month since 2015. oil may test a resistance at 2,034 ringgit per tonne, following its second failure to break a support range of 1,940-1,967 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. related oils, the Chicago July soybean oil contract BON9 had gained 1.5% on Tuesday, in line with soybean’s gains as planting delays in the Midwest crop belt sparked a round of short-covering. GRA/
It was last up 0.2%.
Meanwhile, the July soyoil contract on the Dalian Commodity Exchange DBYN9 was down 1.1%, and the Dalian June palm oil contract DCPM9 dropped 2.9%.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
Palm, soy and prices at 0456 GMT
Low High Volume MY PALM OIL
0 MY PALM OIL
575 MY PALM OIL
8263 CHINA PALM OLEIN JUN9
10 CHINA SOYOIL
6 CBOT SOY OIL
2580 INDIA PALM OIL
273 INDIA SOYOIL
1460 NYMEX CRUDE
-0.45 61.12 61.61 43233 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 India soy oil in Indian rupee per 10 kg Crude in U.S. dollars per barrel
* For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type MYPALM/FLAT .
* 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.
— OILS/ASIA1 Malaysian palm oil exports
CBOT soyoil futures
CBOT soybean futures
— SOLVENT01 Weekly Indian vegetable oils
Dalian Commodity Exchange
Dalian soyoil futures
Dalian refined palm oil futures — 0#DCP:
Zhengzhou rapeseed oil
European edible oil prices/trades — OILS/E ($1 = 4.1720 ringgit) ($1 = 70.2560 Indian rupees) ($1 = 6.8731 Chinese yuan)