Palm snaps six-session losing streak on firmer Chicago soyoil
- Soyoil prices on the Chicago Board of Trade were up 1.85%
KUALA LUMPUR: Malaysian palm oil futures rebounded on Monday, snapping a six-session losing streak on firmer Chicago soyoil, while traders also awaited fresh Malaysian Palm Oil Board data.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 0.95%, to 4,578 ringgit ($1,120.69) per metric ton at the close.
Traders awaited MPOB’s demand and supply data, while stronger Chicago soyoil futures supported the market, said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.
Oil prices inched higher in volatile trade after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies, although concerns about ongoing disruption linked to the US-Israeli war on Iran limited selling.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Soyoil prices on the Chicago Board of Trade were up 1.85%. The Dalian Commodity Exchange is closed for a public holiday and will reopen on October 8.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oil market.
The ringgit, palm’s currency of trade, weakened 0.1% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Danantara Sumberdaya Indonesia, a company established by the Indonesian government to supervise commodity exports, has started the test phase for a new monitoring platform aimed at boosting price transparency, the firm said.