JAKARTA: Malaysian palm oil futures inched higher on Thursday, tracking strength in Dalian soyoil market while a weakening ringgit added support.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was up 0.19% at 4,260 ringgit ($1,008.52) a metric ton at closing.
“The futures followed Dalian while waiting for new leads,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.91%, while its palm oil contract was down 0.07%. Soyoil prices on the Chicago Board of Trade (CBOT) shed 1.46%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Indonesia’s palm oil stocks dropped slightly in August to 2.54 million metric tons, 1% lower than a month earlier, with falling output offsetting a decline in exports, Indonesia’s palm oil association GAPKI said.
The ringgit palm’s currency of trade, weakened 0.24% against the dollar, making palm oil more attractive to buyers holding foreign currencies.
Palm oil is expected to bounce further into a range of 4,289-4,308 ringgit per metric ton, as suggested by a falling channel and the hourly RSI, said Reuters technical analyst Wang Tao.