Palm oil futures end higher

13 Dec, 2018

Malaysian palm oil futures ended higher on Wednesday, buoyed by gains in soyaoil on the US Chicago Board of Trade after President Donald Trump said China was back in the market buying US beans. Trump said on Tuesday that China was buying a "tremendous amount" of US soyabeans and that trade talks with Beijing were already underway by telephone, with more meetings likely among US and Chinese officials.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.9 percent at 2,033 ringgit ($486.01) a tonne at the end of the trading session.
Trading volumes stood at 31,625 lots of 25 tonnes each at the close of trade.
"Palm prices are up following CBOT," said a Kuala Lumpur-based trader, referring to US soyaoil prices. "Trump's statement on soyabean purchases by China lent support."
Palm oil is affected by movements of other edible oils, as they compete for a share in the global vegetable oil market.
The Chicago January soyabean oil contract had gained 0.7 percent on Tuesday, and was last up 0.5 percent on Wednesday.
In other related oils, the January soyabean oil contract on the Dalian Commodity Exchange fell 0.9 percent, and the Dalian January palm oil contract declined 1.3 percent.
Palm oil may retest a resistance at 2,056 ringgit per tonne, as its bounce from the Nov. 27 low of 1,940 ringgit looks incomplete, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

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