JAKARTA: Malaysian palm oil futures closed higher for the second session on Monday, tracking gains in rival Dalian oils and helped by a softer ringgit.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 36 ringgit, or 0.98%, to 3,717 ringgit ($793.72) a metric ton at the closing. The benchmark declined 2.75% last week.
“Today’s market seems to be in correction mode, tracking Dalian strength while awaiting new leads from production. If the current rainy spell being experienced in Malaysia continues, production may slow down lending support to our market,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.91%, while its palm oil contract dipped 0.03%. Soyoil prices on the Chicago Board of Trade were down 0.65%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for September 1 - 25 rose 15.2% to 1,088,875 tons from 945,155 tons shipped during August 1 - 25, independent inspection company AmSpec Agri Malaysia said on Monday.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products in the same period rose 17.5% to 1,144,707 metric tons from 974,235 metric tons shipped during August 1-25.
According to Refinitiv Commodities Research, a worsening drying trend will emerge in October for Indonesia, the biggest palm oil producer in the world.
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