VEGOILS-Palm extends gain amid robust China demand for soyoil
SINGAPORE, Nov 21 (Reuters) - Malaysian palm oil futures rose for a second session on Tuesday amid signs of an increase in Chinese soy demand, although easing exports and a stronger ringgit capped the gains.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 53 ringgit, or 1.5%, to 3,988 ringgit ($852.50) a metric ton in morning trade.
FUNDAMENTALS
China's soybean imports from Brazil rose 71% in October from a year earlier, data showed on Monday, boosted by cheaper prices following a bumper crop in the South American nation.
China imported 4.81 million metric tons of the oilseed from Brazil last month, according to the General Administration of Customs.
Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 was up 1.2%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Nov. 1-20 were seen down around 2% compared with the same period a month ago, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed on Monday.
The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.43% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
Palm oil is biased to revisit its Nov. 16 high of 4,043 ringgit per metric ton, as suggested by its wave pattern, said Reuters technical analyst Wang Tao.
MARKET NEWS
Oil futures eased on Tuesday, reversing the previous day's rally, as concerns over weaker demand amid a slowing global economy outweighed the prospect of deepening supply cuts by OPEC and its allies such as Russia.
Weaker crude oil prices make palm oil a less attractive option for biodiesel feedstock.