Commodities

VEGOILS-Palm oil climbs 2% to record high of over 5,200 ringgit

Credit: REUTERS/LIM HUEY TENG

Malaysian palm oil futures rose to a record high of 5,208 ringgit a tonne on Thursday, lifted by a rally of global edible oils and further supported by signs of improving demand.

KUALA LUMPUR, Oct 21 (Reuters) - Malaysian palm oil futures rose to a record high of 5,208 ringgit a tonne on Thursday, lifted by a rally of global edible oils and further supported by signs of improving demand.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 137 ringgit, or 2.7%, to 5,208 ringgit ($1,253.43) a tonne during early trade, rising for a second consecutive session.

FUNDAMENTALS

* Exports of Malaysian palm oil products for Oct. 1-20 fell 14.7% from the same week in September, an improvement from a 18% decline seen during Oct. 1-15, according to data from cargo surveyor Intertek Testing Services.

* Dalian's most-active soyoil contract DBYcv1 rose 4.2%, while its palm oil contract DCPcv1 4.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices rose to extend gains from the previous session as U.S. crude and fuel inventories tightened further, making palm a more attractive option for biodiesel feedstock. O/R

* Palm oil may rise towards a 5,187-5,274 ringgit range, as it has broken a resistance zone of 5,032-5,048 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Most stock indexes worldwide rose on Wednesday and the Dow Jones Industrial Average touched a record intraday high as more companies reported earnings that beat analysts' expectations, while oil prices jumped. MKTS/GLOB

DATA/EVENTS (GMT)

0645 France Business Climate Mfg Oct

1230 US Initial Jobless Clm Weekly

1230 US Philly Fed Business Indx Oct

1400 EU Consumer Confid. Flash Oct

1400 US Existing Home Sales Sept

($1 = 4.1550 ringgit)

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(Reporting by Mei Mei Chu; Editing by Krishna Chandra Eluri)

((Meifong.chu@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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