SINGAPORE: Malaysian palm oil futures tracked rival Dalian and Chicago oils higher on Thursday, although gains were limited by a stronger ringgit and weaker crude oil prices.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 20 ringgit, or 0.5%, to 3,983 ringgit ($846.91) a metric ton by 0233 GMT.
Palm oil tracks rivals soy oil and crude oil higher
It dipped 0.1% in overnight trade.
Fundamentals
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Dalian’s most-active soyoil contract rose 0.81%, while its palm oil contract gained 1.28%. Soyoil prices on the Chicago Board of Trade edged up 0.02%.
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The US Department of Agriculture in its latest monthly report lowered its estimate on global grains and soy end-stocks in 2024/2025 from its estimate in May.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil prices fell in early trade as investors digested news that the US Federal Reserve has opted against cutting interest rates in the near future, while ample US crude and fuel stocks further weighed on the market.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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The Malaysian ringgit, palm’s currency of trade, strengthened 0.25% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
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