JAKARTA: Malaysian palm oil futures rose on Tuesday to their highest in eight weeks, but profit-taking on weaker rival soyoil and crude oil prices as well as lower October export data limited gains.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 28 ringgit, or 0.68%, to 4,129 ringgit ($872.39) a tonne.
After trade resumed following a long weekend, palm oil futures were lifted by a “weak ringgit and other commodities market rebound,” a trader based in Kuala Lumpur said.
The contract gained nearly 4% before easing on weaker export data and lower crude oil futures.
“Once ITS export data comes out, coupled with softening external oils ie soyoils and crude oils, we take the opportunity to take profit,” a trader said.
Exports of Malaysian palm oil products for October 1-25 fell 3.5%, according to cargo surveyor Intertek Testing Services, while independent inspection company AmSpec Agri reported export for the same period rose 6.6%.
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Dalian’s most active soyoil contract lost 0.33%, while its palm oil contract increased 1.45%. Soyoil prices on the Chicago Board of Trade were down 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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