JAKARTA: Malaysian palm oil futures rose on Monday for a third straight session, supported by gains in rival Dalian and Chicago soyoil.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange climbed 10 ringgit, or 0.27%, to 3,692 ringgit ($794.66) a metric ton in morning trade.
Fundamentals
Dalian’s most-active soyoil contract rose 0.65% and its palm oil contract increased 1.17%. Soyoil prices on the Chicago Board of Trade rose 0.36%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices dipped in early trade on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tensions in the Middle East.
Palm oil gains on expectations of tighter supplies
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit, palm’s currency of trade, rose 0.15% against the U.S dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
Palm oil may fall to 3,709 ringgit per ton, following its failure to break resistance at 3,793 ringgit, said Reuters technical analyst Wang Tao.
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