SINGAPORE: Malaysian palm oil futures extended gains on Wednesday aided by the strength in rival edible oils and a softer ringgit.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange strengthened 9 ringgit, or 0.23%, to 3,939 ringgit ($849.84) per metric ton in early trade.
Fundamentals
Dalian’s most-active soyoil contract fell 0.1%, while its palm oil contract climbed 0.6%. Soyoil prices on the Chicago Board of Trade rose 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
European Union soybean imports in the 2023/24 season had reached 2.16 million metric tons by Aug. 27, up 10% from 1.96 million tons a year earlier, data published by the European Commission showed on Tuesday.
India is poised for its lowest monsoon rains in eight years, with the El Niño weather pattern seen crimping September precipitation after an August that is on track to be the driest in more than a century, two weather department officials told Reuters on Monday.
The Malaysian ringgit, palm’s currency of trade, firmed 0.17% against the dollar, but remained near an over one-month low. A weaker ringgit generally makes palm oil more attractive for foreign currency holders.
Palm oil may break a resistance at 3,963 ringgit per metric ton, and rise into the 4,017-4,050 ringgit range, said Reuters technical analyst Wang Tao.
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