Palm oil rises on stronger rivals; firmer ringgit caps gains
KUALA LUMPUR, July 17 (Reuters) -Malaysian palm oil futures rose on Wednesday, supported by strength in rival Dalian and Chicago contracts, although a firmer ringgit currency limited gains.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange was up 33 ringgit, or 0.84%, to 3,957 ringgit ($846.96) a metric ton by 0257 GMT.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 rose 0.87%, while its palm oil contract DCPcv1 added 2.09%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.56%.
* Palm oil is affected by price movements in related oils, as they compete for a share of the global vegetable oils market.
* The ringgit MYR=, palm’s currency of trade, firmed 0.06% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
* Oil prices were steady in early Asian trade, with Brent hovering near the one-month low it hit in the prior session, as signs of weakening demand growth in China clashed with the prospect of declining U.S. oil stockpiles. O/R
* Brent crude oil futures LCOc1 edged up 5 cents, or 0.06%, to $83.78 a barrel by 0249 GMT.
* Malaysia’s benchmark crude palm oil futures are expected to average between 3,850 ringgit and 4,000 ringgit per ton this year, a slight increase from 2023, the Malaysian Palm Oil Association said earlier this week.
* Palm oil may revisit its July 12 high of 3,991 ringgit per metric ton, as a consolidation from the July 10 low of 3,850 ringgit has extended, Reuters technical analyst Wang Tao said.
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-oil-rises-on-stronger-rivals-firmer-ringgit-caps-gains-53881968
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