Oil

VEGOILS-Palm oil climbs to six-week high on weak ringgit, supply woes

KUALA LUMPUR, Oct 18 (Reuters)Malaysian palm oil futures rose for a third consecutive session to its highest in six weeks on Tuesday, helped by the decline in the ringgit and concerns over global edible oil supply.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 58 ringgit, or 1.49%, to 3,945 ringgit ($836.16) a tonne during early trade.

FUNDAMENTALS

* The ringgit MYR=, palm’s currency of trade fell 0.06% against the dollar to its lowest since 1998, making the commodity cheaper for holders of foreign currency.

* The palm market was supported by concerns over supply disruption as Russia threatened to pull out of an agreement on Black Sea grain exports, Refinitiv Commodities Research said in a note late Monday.

* Exports of Malaysian palm oil products for Oct. 1-15 fell 0.9% to 640,119 tonnes from the same period in September, cargo surveyor Societe Generale de Surveillance said on Tuesday.

* Dalian’s most-active soyoil contract DBYcv1 gained 0.1%, while its palm oil contract DCPcv1 gained 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.5%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil may break a resistance at 3,924 ringgit per tonne and rise into 3,958-4,001-ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asia stocks nudged higher on Tuesday as the dramatic U-turn in British fiscal policy brightened investor sentiment, while the U.S. dollar took a breather at its lowest levels in more than a week as a revival in risk-taking lowered its appeal. MKTS/GLOB

DATA/EVENTS (GMT)

0900 Germany ZEW Economic Sentiment Oct

0900 Germany ZEW Current Conditions Oct

1315 US Industrial Production MM Sept ($1 = 4.7180 ringgit)

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(Reporting by Mei Mei Chu; Editing by Savio D’Souza)

((Meifong.chu@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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