VEGOILS-Palm oil set for second straight weekly rise, tracking rival oils

  • Reuters
  • Commodities News
VEGOILS-Palm oil set for second straight weekly rise, tracking rival oils

KUALA LUMPUR, Oct 30 (Reuters) - Malaysian palm oil futures rose on Friday after scaling a more than nine-month high in the previous session, with strength in rival oils putting palm on course for a second straight weekly gain.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange climbed as much as 2.1% to 3,115 ringgit ($748.26) in early trade.

FUNDAMENTALS

* Dalian's most-active soyoil contract DBYc3 gained 1.62%, while its palm oil contract DCPc4 rose 2.46%. Soyoil prices on the Chicago Board of Trade BOc1 were up 1.36%.

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

* Malaysia on Wednesday gave approval for state-owned palm oil plantation agency Federal Land Development Authority (Felda) to issue a 9.9 billion ringgit ($2.38 billion) sukuk with a government guarantee to finance its restructuring plans. A leading trade body has urged the Indian government not to reduce import taxes on edible oils as lower prices could hurt local farmers who are trying to boost production.

* Edible oil prices in India, the world's biggest importer of vegetable oils, have jumped recently, tracking a rally on foreign markets and after the local soybean crop was damaged by excessive rainfall. Although the government is not currently suggesting dampening edible oil prices by cutting import taxes, it has taken such a step in the past.

MARKET NEWS

* A gauge of Asian shares fell for a third straight session on Friday as jitters over upcoming U.S. presidential elections and fears that the global economic downturn will persist enveloped markets. MKTS/GLOB

DATA/EVENTS (GMT) 0630 France GDP Preliminary QQ

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