JAKARTA: Malaysian palm oil futures closed higher on Wednesday, paring some gains from the previous session after lack of buying from key destinations and a stronger ringgit capped gains.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 4 Malaysian ringgit, or 0.09%, to 4,474 ringgit ($1,068.55) a metric ton at the close.
The futures rose as much as 2.35% during the morning session.
“The futures opened higher today, adjusting with global vegoil prices. However, lack of buying from key destination India and stronger ringgit has seen capping of gains in the futures,” said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
The ringgit palm’s currency of trade, strengthened 0.31% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Dalian’s most-active soyoil contract slipped 0.62%, while its palm oil contract was down 0.63%. Soyoil prices on the Chicago Board of Trade (CBOT) BOcv1dropped 1%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
The U.S. Environmental Protection Agency on Tuesday issued a proposal for reallocating to large refineries the biofuel blending obligations waived under the Small Refinery Exemption (SRE) program, offering two primary options of 50% and 100%.
India’s palm oil imports jumped in August to their highest level in more than a year, as competitive pricing relative to soyoil prompted refiners to step up purchases ahead of the festive season, a leading trade body said on Monday.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for September 1-15 rose 2.6% compared to August 1 - 15, while according to independent inspection company AmSpec Agri Malaysia it fell 0.1%.
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