Malaysian palm oil futures were slightly up on Friday 6th July’2018, and set to snap three sessions of declines, though traders say it is mostly trading sideways on caution over the China-U.S. trade spat.

The benchmark palm oil contract for September delivery 1FCPOc3 on the Bursa Malaysia Derivatives Exchange was up 0.2 percent at 2,289 ringgit ($566.30) a tonne at noon.

Palm, however, was down 1.6 percent for the week so far, as weak demand weighed on prices. POI/

Trading volumes stood at 12,260 lots of 25 tonnes each at the midday break. 1FCPO-TOT

"The market is trading sideways today. Traders are waiting to see what would happen with regard to the China-U.S. tariffs," said a futures trader in Kuala Lumpur.

"Palm's current gain is a small retracement after seeing drops in the past three days."

U.S. tariffs on $34 billion worth of Chinese imports took effect as a deadline passed on Friday, and with Beijing having vowed to respond immediately in kind, the world's two biggest economies took a high-stakes turn towards an all-out trade war. (Full Story)

Another trader said a weak ringgit MYR= also helped in supporting palm prices, as this makes the tropical oil cheaper for holders of foreign currencies.

The ringgit, palm's currency of trade, is currently at six month lows and lost 1.5 percent last month. It was last down 0.02 percent at 4.0420 against the dollar around noon Friday.

In other related oils, the Chicago December soybean oil contract BOcv1 was down 0.1 percent, while the September soybean oil on China's Dalian Commodity Exchange DBYU8 rose 1 percent.

Meanwhile, the Dalian September palm oil contract DCPU8 was slightly down 0.1 percent.

Palm oil prices track the performance of other edible oils as they compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices at 0511 GMT

    Contract    

    Month    

     Last     

    Change    

     Low      

     High     

     Volume     

MY PALM OIL

JUL8

0

+0.00

0

0

0

MY PALM OIL

AUG8

2286

+7.00

2274

2289

627

MY PALM OIL

SEP8

2289

+5.00

2277

2293

4884

CHINA PALM OLEIN       

SEP8

4814

-6.00

4788

4856

169444

CHINA SOYOIL

SEP8

5628

+54.00

5580

5644

274416

CBOT SOY OIL

DEC8

29.01

+0.00

28.93

29.03

3485

INDIA PALM OIL

JUL8

632.40

+0.10

631.50

632.8

49

INDIA SOYOIL

JUL8

755.35

+0.55

753.2

755.5

650

NYMEX CRUDE

AUG8

73.01

+0.07

72.63

73.19

41689

 

Palm oil prices in Malaysian ringgit per tonne

CBOT soy oil in U.S. cents per pound

Dalian soy oil and RBD palm olein in Chinese yuan per tonne

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

 

  • ($1 = 4.0420 ringgit)
  • ($1 = 68.8575 Indian rupees)
  • ($1 = 6.6547 Chinese yuan)

 

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