VEGOILS-Palm extends gain on low production, robust China demand for soyoil
SINGAPORE, Nov 21 (Reuters) - Malaysian palm oil futures rose for a second session on Tuesday, buoyed by low production and 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 46 ringgit, or 1.2%, to 3,980 ringgit ($850.79) a metric ton at the midday break.
"There are a number of reasons for the firm prices of palm oil," said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand and Co.
"This month, there has been low production in Malaysia, and robust demand for biodiesel has kept the market firm. Strong prices of rival soyoil has supported the market," Mitesh added.
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 down 0.2%. 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-Nov. 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 0.45% against the dollar.
A stronger ringgit makes palm oil less attractive for foreign currency holders.
($1 = 4.6780 ringgit)