JAKARTA: Malaysian palm oil futures closed higher on Monday, supported by rival soyoil in Chicago and Dalian markets, while the market awaits data from the Malaysian Palm Oil Board, and the Price Outlook Conference.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 19 ringgit, or 0.46percent, to 4,173 ringgit (USD1,061.29) a metric ton, at close.
“Today’s market will follow the Dalian lead until MPOB data tomorrow, and POC analysts’ outlook for further leads,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract gained 0.07percent, while its palm oil contract fell 0.31 percent. Soyoil prices on the Chicago Board of Trade rose 1.63percent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. The MPOB is scheduled to release its monthly data on February 10, while the POC will take place between February 9 and 11.
Malaysia’s palm oil inventories are set to end a 10-month rising streak in January, as exports jumped during a seasonal slowdown in production, a Reuters survey showed.
Meanwhile, crude oil prices fell 1percent on Monday as immediate fears of a conflict in the Middle East eased after the US and Iran pledged to continue talks about Tehran’s nuclear programme over the weekend, soothing investors’ concerns over supply disruptions. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.33percent against the dollar, making the commodity more expensive for buyers holding foreign currencies.