JAKARTA: Malaysian palm oil futures closed higher for a fourth consecutive session on Tuesday, helped by strength in rival oils, as the market awaited the monthly Malaysian Palm Oil Board (MPOB) data scheduled for release on Wednesday for further direction.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 41 ringgit, or 1.11%, to 3,734 ringgit ($804.39) a metric ton on the closing.
“The futures are trading higher following a bullish recovery in Dalian’s RBD palmolein, soyoil and ZCE rapeseed oil futures in Asian hours today, also a bullish rebound in Chicago’s soyoil Monday overnight,” Anilkumar Bagani, head of Research from India-based Sunvin Group said.
Anil also said that the delays of vessels due to problems in the Red Sea have also supported the bullish sentiments. Dalian’s most-active soyoil contract rose 0.35% and its palm oil contract increased 0.28%. Soyoil prices on the Chicago Board of Trade rose 1.17%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Oil prices steadied in early trade after sliding in the previous session as markets weighed Middle East tensions against demand worries and rising OPEC supply.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The Malaysian ringgit, palm’s currency of trade, rose 0.15% against the US dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
Palm oil may test support of 3,607 ringgit per ton, and fall into the 3,576-3,607 ringgit range, said Reuters technical analyst Wang Tao.
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