SINGAPORE: Malaysian palm oil futures finished more than 1% higher on Thursday, snapping a two-day downturn, as traders sought bargains amid higher prices of bean and palm oil on the Dalian exchange.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange jumped 50 ringgit, or 1.31%, to 3,880 ringgit ($835.67) per metric ton, paring losses from the previous session.
“Higher related edible oils (as of midday) close, bouts of bargains and renewed impetus to test fresh resistance levels are driving crude palm oil futures buying momentum,” said Sathia Varqa, a senior analyst at Singapore-based Fastmarkets Palm Oil Analytics.
Dalian’s most-active soyoil contract strengthened 2.1%, while its palm oil contract grew 0.7%. Soyoil prices on the Chicago Board of Trade fell 0.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm sinks to 1-week low on weaker rival oils, rising supply
Indonesia’s palm oil exports, including refined products in June stood at 3.45 million metric tons, a 43% jump compared to a year ago, data from the Indonesian Palm Oil Association showed on Thursday.
Malaysia maintained its export tax for crude palm oil for September at 8% and increased its reference price, according to a Malaysian Palm Oil Board circular.
Production at Southern Peninsular Palm Oil Millers’ Association mills showed better recovery than anticipated during Aug. 1-20, up 7% from last month.
Palm oil may approach its Aug. 21 high of 3,978 ringgit per metric ton, as it has stabilised around a support of 3,820 ringgit, said Reuters technical analyst Wang Tao.
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