VEGOILS-Palm opens higher on soyoil strength, weaker ringgit
JAKARTA, Nov 14 (Reuters) - Malaysian palm oil futures rose on Tuesday, supported by gains in rival Dalian and Chicago soyoil prices, and a weaker ringgit.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 33 ringgit, or 0.87%, to 3,835 ringgit ($813.71) a metric ton in morning trade.
FUNDAMENTALS
India's imports of palm oil and sunflower oil in 2022/23 surged by 24% and 54%, respectively, to record highs on a rebound in consumption and as both oils were available at a steep discount compared to rival soyoil.
Higher purchases by India, the world's biggest importer of vegetable oils, could help to lower palm oil stocks in Indonesia and Malaysia. The buying could reduce inventories in sunflower oil-producing Black Sea countries.
Malaysia's palm oil stockpiles stood at a four-year high at the end of October despite more-than-expected exports, data from the Malaysian Palm Oil Board (MPOB) showed on Friday.
Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.64%. Dalian's most-active soyoil contract DBYcv1 was up 1.43%, while its palm oil contract DCPcv1 increased 0.95%.
Soybean prices impact the cost of soyoil, which competes with palm oil for a share in the global vegetable oil market.
Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports of Malaysian palm oil products for Nov. 1-10 at 404,074 metric tons.
The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.21% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
MARKET NEWS
Oil prices inched up after an OPEC report said market fundamentals remained strong and due to concerns supplies might be disrupted as the U.S. cracks down on Russian oil exports.
Asian shares inched up in cautious trading ahead of a crucial U.S. inflation report that could heavily influence the Federal Reserve's policy outlook, while the fragile yen flirted with one-year lows, putting it back in the intervention zone.