JAKARTA: Malaysia’s benchmark palm oil futures rose for a third straight session on Tuesday, supported by gains in rival edible oils, but concerns over high stock levels in Indonesia weighed on sentiment.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 0.26%, to 4,171 ringgit ($929.99) a tonne by midday break, after rising as much as 1.88% earlier in the session.
“Buying momentum in early session met with gradual selling pressure as market perceived high end stocks is still looming in Indonesia,” a Kuala Lumpur-based trader said.
Palm oil inventories in rival Indonesia rose after an export ban that ended in May, amid efforts to control domestic cooking oil prices.
Authorities have since tried to boost shipments despite imposing an export restriction following the ban.
Indonesia Trade Minister said that India is committed to importing 2.6 million tonnes of palm oil products, without providing details about the period for the sales.
Dalian’s soyoil contract gained 1.37%, while its palm oil contract rose 1.69%.
Soyoil prices on the Chicago Board of Trade were little changed. 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 retest a resistance at 4,269 ringgit per tonne, a break above which could lead to a gain to 4,452 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.