JAKARTA: Malaysian palm oil futures reversed midday losses and rose on Thursday, tracking rival edible oils at the Dalian exchange, while the market awaited further catalysts.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 27 ringgit, or 0.57%, to 4,724 ringgit ($1,156.43) at the close.
“The future is expected to trade between the 4,650 ringgit to 4,750 ringgit range, tracking Dalian performance while waiting for new developments,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.5%, while its palm oil contract gained 0.4%. Soyoil prices on the Chicago Board of Trade were up 0.06%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
India’s palm oil imports in July rose about 50% from the previous month to 730,965 metric tons, a trade body said on Thursday.
Brazil’s Supreme Court formed a majority on Wednesday to rule that the soy moratorium agreement, which barred companies from buying soybeans from areas deforested after 2008, is legal, exempting grain traders and processors from paying compensation sought by farmers, who argued the pact constitutes a cartel.
Malaysia has lowered its September crude palm oil reference price to a level that maintains the export duty at 10%, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
Oil prices declined on Thursday as investors assessed prospects for weaker global demand this year and higher U.S. crude stocks, while prices found support from a lack of progress in talks over the blockaded Strait of Hormuz and disruptions to supply.
Lower crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.05% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
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