KUALA LUMPUR: Malaysian palm oil futures rose on Thursday after a three-day losing streak, buoyed by stronger rival Dalian contracts and firmer crude oil prices.
Malaysian palm oil surrenders early gains
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 0.84%, to 3,728 ringgit ($834.75) a metric ton by 0327 GMT.
The contract had closed near seven-month lows in the previous two sessions.
Fundamentals
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Dalian’s most-active soyoil contract rose 1.32%, while its palm oil contract added 0.74%. Soyoil prices on the Chicago Board of Trade were down 0.29%.
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Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
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Oil prices edged higher on Thursday for the third straight session after government data showed a steep draw in US crude stockpiles, rebounding from multi-month lows touched this week.
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Brent crude futures gained 0.2% at $78.49 a barrel by 0322 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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The ringgit, the palm’s currency of trade, strengthened 0.71% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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Palm oil is expected to rise into a range of 3,784 ringgit to 3,789 ringgit per metric ton, as it has found support in the zone of 3,671 ringgit to 3,704 ringgit, Reuters technical analyst Wang Tao said.
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