VEGOILS-Palm oil climbs for peak from day five to seven weeks
KUALA LUMPUR, October 20 (Reuters) – Malaysian palm oil futures extended their rally for a fifth straight session on Thursday, hitting their highest level in seven weeks, buoyed by a weakening ringgit and gains in rival edible oils.
The reference palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgits, or 1.12%, to 4,164 ringgits ($881.08) a tonne at the start of trading.
* Concerns about wet weather led to reduced production in major producers Indonesia and Malaysia, as well as fears of higher Indian import duties helped support prices.
* The most active soybean oil contract in Dalian DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 2.2%. Chicago Board of Trade Soybean Oil Price BOcv1 slipped after rising 1.7% overnight.
* Palm oil is impacted by related oil price movements as they compete for share of the global vegetable oil market.
* The ringgit MYR=the palm’s currency, fell 0.17% against the dollar, making it cheaper for buyers holding foreign currency.
* Palm oil may test a resistance zone of 4,184 to 4,194 ringgits per tonne, with a good chance of breaking above that range and reaching 4,253 ringgits, Reuters technical analyst Wang Tao said. TECHNICAL/C
* Asian stock markets fell on Thursday as investor fears of a looming recession weighed on risk appetite, while Treasury yields rose on expectations that the Federal Reserve will remain aggressive in its hikes interest rate. MKTS/GLOB
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($1 = 4.7260 ringgit)
(Reporting by Mei Mei Chu; Editing by Stephen Coates)
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