Palm oil tracks strength in rival oils
- The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 25 ringgit, or 0.6%, to 4,358 ringgit ($1,044.83) a tonne during early trade
SINGAPORE: Malaysian palm oil futures edged higher on Monday, supported by overnight strength in Chicago soyoil prices and as traders took cues from firmer palm prices on the Dalian.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 25 ringgit, or 0.6%, to 4,358 ringgit ($1,044.83) a tonne during early trade.
"Palm is up because soybean oil rose overnight," a Kuala Lumpur-based trader told Reuters. "(Rival oils) on the Dalian also rose this morning".
Soybeans on the Chicago Board of Trade rose overnight for the first time in three sessions.
CBOT's soybean oil contract, however, edged lower by 0.1%.
Also supporting prices were higher palm prices on the Dalian Commodity Exchange, which rose 0.2%. Dalian's soybean oil contract however, fell 0.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may fall into a range of 4,155 ringgit to 4,251 ringgit, as it failed to break a resistance at 4,405 ringgit per tonne, Reuters technicals analyst Wang Tao said.
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