Palm steady tracking overnight gains in soyoil

KUALA LUMPUR: Malaysian palm oil futures extended their gains slightly on Monday, supported by overnight strength in soyoil on the Chicago Board of Trade (CBOT) and other related oils on China's Dalian Commodity Exchange.

However, the muted approach in market could be due to profit-taking after palm's recent sharp gains.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange inched up 0.04 percent to 2,758 ringgit ($653.86)a tonne at the midday break, in line for a fourth straight session of gains.

Traded volumes stood at 21,137 lots of 25 tonnes each at the midday break.

"The palm market moved higher in the morning on China's Dalian Commodity Exchange and overnight soyoil prices," said a futures trader from Kuala Lumpur, referring to the CBOT.

Palm oil shipments from Malaysia, the world's second-largest producer after Indonesia, rose in the first-half of October, up 10.3 percent from the corresponding period last month, showed data from cargo surveyor Intertek Testing Services (ITS).

The trader added the market was also expecting data from cargo surveyor Societe Generale Surveillance.

"If there is a decline in exports, then we could expect some lower prices in the afternoon session."

In other related edible oils, the December soybean oil contract on the Chicago Board of Trade slipped as much as 0.03 percent, while the January soybean oil contract on China's Dalian Commodity Exchange climbed up to 1.09 percent.

The January palm olein contract was up by 1 percent.

Palm's prices are impacted by movements of related oils as they compete for a share in the global vegetable oils market.

Palm is expected to rise into a range of 2,782-2,812 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.