VEGOILS-Palm oil recovers from steep losses as ringgit falls

KUALA LUMPUR, Aug 16 (Reuters) – Malaysian palm oil futures rose on Tuesday, recovering from sharp losses in the previous session, supported by a weakening ringgit.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 129 ringgit, or 3.12%, to 4,267 ringgit ($955.87) a tonne during early trade, up for a third in four sessions.

FUNDAMENTALS

* A widening discount between crude palm oil and soybean oil, now at about $520 per tonne, and a weakening ringgit has also spurred demand, Refinitiv Commodities Research said in a note late Monday.

* The ringgit MYR=, palm’s currency of trade, fell 0.16% against the dollar, making the commodity cheaper for holders of foreign currency.

* Exports of Malaysian palm oil products for Aug. 1-15 fell 9.5% to 516,072 tonnes from the same week in July, cargo surveyor Societe Generale de Surveillance said.

* Dalian’s most-active soyoil contract DBYcv1 fell 0.7%, while its palm oil contract DCPcv1 lost 0.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.03%.

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

* Palm oil looks neutral in a narrow range of 4,085 ringgit to 4,269 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Global equities and the U.S. dollar advanced on Monday despite weaker-than-expected economic data in China that prompted its central bank to cut its lending rate, stoking concerns of a global recession. MKTS/GLOB

* Oil prices fell, extending losses from the previous session, after economic data from China, the world’s largest crude importer, spurred fresh concerns about a potential global recession that could hit energy demand. O/R

DATA/EVENTS (GMT)

0430 Japan Tertiary Ind Act NSA June

0600 UK Claimant Count Unem Chng July

0600 UK ILO Unemployment Rate June

0600 UK HMRC Payrolls Change July

0630 India WPI Inflation YY July

0900 EU Total Trade Balance SA June

0900 Germany ZEW Economic Sentiment Aug

0900 Germany ZEW Current Conditions Aug

1230 US Housing Starts Number July

1315 US Industrial Production MM July

($1 = 4.4640 ringgit)

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(Reporting by Mei Mei Chu; Editing by Rashmi Aich)

((Meifong.chu@thomsonreuters.com))

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