JAKARTA: Malaysian palm oil futures rose on Monday, supported by strength in Chicago soyoil, but gains were limited on strength in the Malaysian ringgit and as exports are seen easing.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 5 ringgit, or 0.13%, to 3,936 ringgit ($841.39) a metric ton at closing.
“Bursa Malaysia CPO (crude palm oil) futures were seen trading higher following higher Chicago soyoil futures on Friday night and in today’s Asian hours,” said Anilkumar Bagani, commodity research head of Mumbai-based Sunvin Group.
However, a slightly negative palm oil export performance and a relatively stronger ringgit were capping the gains in ringgit-denominated palm oil futures, he added.
Palm closes down on Dalian soyoils, crude
Soyoil prices on the Chicago Board of Trade were up 0.80%. Dalian’s most active soyoil contract slipped 0.12%, while its palm oil contract was down 0.27%.
Palm oil prices are affected by soyoil prices as they compete for a share in the global vegetable oil market.
Malaysian ringgit strengthened 0.28% against the U.S. dollar by 1006 GMT.
Exports of Malaysian palm oil products for Nov. 1-Nov. 20 period were seen to be falling around 2% compared with the same period a month ago, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed on Monday.
Palm oil may retest support at 3,917 ringgit per metric ton, a break below which could open the way towards 3,882-3,895 ringgit range, according to Reuters’ technical analyst Wang Tao.
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