JAKARTA: Malaysian palm oil futures closed higher on Thursday after ending at a 17-week low in the previous session, supported by strength in Dalian’s palm olein prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 41 ringgit, or 1%, to 4,149 ringgit ($982.24) a metric ton, at the close.
“Today’s solid improvement on Dalian palm olein prices has lifted the palm oil futures,” a Kuala Lumpur based trader said.
Dalian’s most-active soyoil contract rose 0.84%, while its palm oil contract gained 1.32%. Soyoil prices on the Chicago Board of Trade (CBOT) was up 0.76%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The Brazilian Supreme Court decided to suspend ongoing legal proceedings on the so-called soy moratorium until it reaches a final decision on the matter.
India’s rapeseed planting is expected to hit a new high this year on record Chinese buying of rapeseed meal and above-average rainfall that resulted in favourable soil moisture for the crop.
The ringgit palm’s currency of trade, strengthened 0.19% against the dollar, making palm oil less attractive to buyers holding foreign currencies.
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