VEGOILS-Palm oil tepid on rising stockpiles, stronger crude
SINGAPORE, Nov 1 (Reuters) - Malaysian palm oil futures traded flat on Wednesday, as concerns over rising stockpiles were offset by stronger crude prices.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange last traded at 3,679 ringgit ($770.79) a metric ton at the midday break.
Exports of Malaysian palm oil products for October rose between 6.6% and 8.9% from a month earlier, cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia said on Tuesday.
The rise in exports is being offset by expectations of higher output, according to analysts.
Currently, it is the peak season for palm oil production, but inventory levels are expected to come down next month, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand and Co.
China's manufacturing activity unexpectedly returned to contraction in October, an official factory survey showed on Tuesday.
Dalian's most-active soyoil contract DBYcv1 was up 0.03%, while its palm oil contract DCPcv1 was down 0.7%.
A poll of seven analysts showed that U.S. soybean crush likely increased in September to 5.249 million short tons, the largest September crush on record.
This increase is expected to boost supplies of soyoil, which competes with palm oil for market share.
Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.4%.
Crude oil prices edged up ahead of key global central bank meetings this week including the U.S. Federal Reserve. The market also closely watched the latest developments in the Israel-Hamas conflict.
Stronger crude makes palm a more attractive option for biodiesel feedstock.
The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.2% against the dollar.
A weaker ringgit makes palm oil more attractive for foreign currency holders.
($1 = 4.7730 ringgit)