KUALA LUMPUR: Malaysian palm oil futures rose on Thursday, buoyed by strength in rival Dalian contracts and a weaker ringgit although losses in crude oil capped the gains.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 68 ringgit, or 1.77%, to 3,913 ringgit ($917.47) a metric ton at 0246 GMT.
Palm rises on estimates of higher exports, stronger rival oils
The contract rose 3% in the previous session, its biggest single-session climb since July 24, 2023.
Fundamentals
-
Dalian’s most-active soyoil contract rose 0.82%, while its palm oil contract added 2.33%. Soyoil prices on the Chicago Board of Trade were down 0.15%.
-
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
-
The ringgit, palm’s currency of trade, weakened 0.5% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
-
Oil prices fell in Asian trading after a larger-than-expected Federal Reserve interest rate cut sparked concerns about the US economy.
-
Brent crude futures for November were down 0.29% at $73.44 a barrel as of 0236 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
-
Crude palm oil prices are expected to remain stable this month, as a strengthening ringgit currency offset tighter supplies and stagnant exports to key destinations, state agency the Malaysian Palm Oil Council (MPOC) said on Wednesday.
-
The MPOC said prices would be seen trading within a range of 3,850-4,050 ringgit a metric ton in September.
-
Palm oil may retrace into a range of 3,819 ringgit to 3,833 ringgit per metric ton, as a bounce from the Sept. 17 low of 3,702 ringgit may end around resistance at 3,893 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.