JAKARTA: Malaysian palm oil futures ended barely changed on Thursday as market participants awaited cues amid support from rival vegetable oils, although a strong ringgit and rising production limited gains.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 1 ringgit, or 0.02%, to 4,036 ringgit ($923.57) a metric ton by at closing. The contract traded between 4,005 ringgit and 4,054 ringgit a ton in early trade, after closing at 4,037 ringgit in the previous session. “Today crude palm oil futures is still consolidating after yesterday’s supportive demand news from India and rising production from Malaysian Palm Oil Association,” a Kuala Lumpur-based trader said, adding the market is awaiting further cues. However, rising production and a stronger Malaysian ringgit, the contract currency of trade, may cap the price rally, the trader said. The ringgit strengthened 0.41% against the US dollar on Thursday, making the contract less attractive for foreign currency holders.
Dalian’s most-active soyoil contract was up 0.59%, while its palm oil contract gained 0.98%. Soyoil prices on the Chicago Board of Trade (CBOT) rose 0.62%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market. India has started raising palm oil purchases after a five-month lull as a correction in prices made the tropical oil cheaper than rival soyoil, encouraging refiners to place orders to replenish inventories, four dealers told Reuters.
Comments
Comments are closed for this article.