AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Palm sees second straight gain on soyoil, weaker ringgit

KUALA LUMPUR: Malaysian palm oil futures rose for a second consecutive session on Wednesday, supported by stre
Published March 29, 2017

 

palmoil-1024KUALA LUMPUR: Malaysian palm oil futures rose for a second consecutive session on Wednesday, supported by strength in soyoil on the Chicago Board of Trade and a weaker ringgit.

Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to 2,721 ringgit ($616.03) a tonne at the end of the trading day.

Traded volumes stood at 50,006 lots of 25 tonnes each in the evening.

"A weaker ringgit and a rebound in the Chicago Board of Trade overnight supported a recovery in palm oil, but it lacks bullish news to support a strong rally," said a futures trader from Kuala Lumpur.

The ringgit weakened 0.1 percent to touch 4.4170 against the dollar on Wednesday evening, after hitting an intraday low of 4.4230. A weaker ringgit usually supports palm oil prices by making it cheaper for holders of foreign currencies.

Palm oil prices are also impacted by the performance of related vegetable oils, including soyoil, as they compete for a share in the global vegetable oil market.

Soybean oil on the Chicago Board of Trade rose 0.1 percent on Wednesday, holding steady after a near 2 percent decline on Monday.

In other related edible oils, the September soybean oil contract on the Dalian Commodity Exchange rose 0.1 percent, while the September contract for palm olein on the Dalian Commodity Exchange was up 0.7 percent.

Palm has been range-bound since late-February as market signals remain mixed. Traders say March demand lacks strength, while and output growth is still uncertain.

Cargo surveyor data showed a drop in Malaysian palm oil exports during the March 1-25 period, down 1.2-1.5 percent from the corresponding period in February.

Malaysian production in February dropped 1.4 percent on the month. March data is however expected to show a recovery in line with the seasonal trend but recovery growth remains uncertain.

Palm oil may end its current downtrend around support at 2,533 ringgit per tonne and then resume its uptrend from the Aug. 25, 2015 low of 1,863 ringgit over the next three months, according to a Reuters market analyst for commodities and energy technicals.

 

Copyright Reuters, 2017
 

 

 

Comments

Comments are closed.