VEGOILS-Palm oil gains on strong Chinese demand, weak crude oil prices weigh
SINGAPORE, Nov 8 (Reuters) - Malaysian palm oil futures rose on Tuesday, supported by robust soybean imports to China and indications of strong demand, though gains were limited as crude oil prices fell to their lowest in more than three months.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 25 ringgit, or 0.7% to 3,745 ringgit ($803.65) a metric ton in morning trade.
FUNDAMENTALS
China imported 5.16 million metric tons of soybeans in October, customs data showed on Tuesday, a 25% surge from a year earlier but lower than analysts' expectations as Brazilian soybeans continued to arrive at ports later than usual.
China booked its largest single-day U.S. soybean purchases in three months on Tuesday, traders said, offering hope for the most valuable U.S. farm export after overseas sales of the 2023 harvest had fallen behind normal pace.
Chicago soybean futures traded at prices close to their highest level in two months; elevated soybean prices translate into increased costs for soyoil, a product derived from soybeans.
Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.3%. Dalian's most-active soyoil contract DBYcv1 was down 0.1%, while its palm oil contract DCPcv1 was down 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 fell on Wednesday to their lowest in over three months, after industry data showed a steep build in U.S. crude supplies, while mixed Chinese economic data raised worries about global demand for crude.
Weaker crude oil prices make palm oil a less attractive option for biodiesel feedstock.
The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.2% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
India's National Commodity and Derivatives Exchange (NCDEX) will launch sunflower oil futures contracts on Nov. 12, a senior exchange official told Reuters on Tuesday.