RTRS: Palm futures rally on crude oil, strong exports data
JAKARTA, Dec 15 (Reuters) - Malaysian palm futures rose on Monday boosted by soaring crude oil prices amid expectations that OPEC would agree to cut output at a Dec. 17 meeting in Algeria, traders said.
They said buying sentiment was also bolstered by news of stronger palm oil-exports data.
The benchmark February palm oil contract KPOc3 on the Bursa Malaysia's Derivatives Exchange rose 22 ringgit, or 1.39 percent, to 1,603 ringgit ($451), a tonne by midday.
Other traded contracts rose by between 14 ringgit and 35 ringgit. Overall volume stood at 2,107 lots of 25 tonnes each.
"The market basically gained on crude oil. In early trade, crude oil was about $1 higher. The good export number just added the fuel to the market rally," a trader at a Kuala Lumpur-based brokerage said.
Exports of Malaysian palm oil products for Dec. 1-15 jumped 39.3 percent to 868,629 tonnes from 623,530 tonnes shipped between Nov. 1 and 15, cargo surveyor Intertek Testing Services said on Monday. [ID:nKLR367421]
Exports were mainly driven by shipments to the Indian subcontinent which surged to 213,006 tonnes from 42,089 tonnes in the same period last month as traders scurried to buy ahead of an expected tax on imports of crude palm oil.
By 0451 GMT, U.S. light crude for January delivery CLc1 rose $0.99 to $47.25 a barrel on signs that OPEC members are set to make a deep supply cut.
"There is expectation that OPEC will cut output by at least 1.5 million barrels a day. So if the cut is less than expected, the palm market will be under pressure again," said another trader at a Kuala Lumpur-based investment bank.
The trader said he sees near-term resistance level for palm futures at 1,660 ringgit.
In physical market, Malaysian palm oil for December deliveries was traded at 1,600 ringgit per tonne in the southern region and 1,590-1,600 ringgit per tonne in the central region.
Palm, soy and crude oil prices were at 0433 GMT. Contract
Last Net chg Settle Open High Low Volume PALM OIL DEC8 1580 + 16.00 1564 1605 1605 1577 211 PALM OIL JAN9 1606 + 17.00 1589 1624 1628 1600 269 PALM OIL FEB9 1603 + 22.00 1581 1625 1630 1598 1013 PALM OIL MAR9 1604 + 14.00 1590 1623 1631 1599 593 CBOT soyoil* 31.31 + 0.39 30.92 N/A 31.49 30.91 N/A NYMEX crude** 46.99 + 0.72 46.28 N/A 47.64 46.51 N/A Palm oil prices in Malaysian ringgit per tonne * Soy oil in U.S. cents per pound ** Crude in USD per barrel (Reporting by Aloysius Bhui; Editing by Valerie Lee)
