KUALA LUMPUR: Malaysian palm oil futures opened higher on Wednesday for a fourth session, buoyed by stronger rival Dalian oils and crude oil prices, though weaker Chicago soyoil limited gains.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.31%, to 3,880 ringgit ($913.80) a metric ton in early trade.
Dalian’s most-active soyoil contract rose 0.23%, while its palm oil contract added 1.05%. Soyoil prices on the Chicago Board of Trade were down 0.14%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices edged higher in early trading as the US barred Chevron from exporting crude from Venezuela under a new authorization on its assets there, raising the prospect of tighter supply.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0.26% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
European Union soybean imports for the 2024/25 season, which began in July, reached 12.69 million metric tons by May 25, up 7% from the same period a year earlier, while palm oil imports were at 2.57 million tons, down 19%, data published by the European Commission stated.
Palm oil may retrace into a range of 3,814 ringgit to 3,838 ringgit per metric ton, as it faces strong resistance at 3,878 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.