Palm oil settles higher on stronger rivals, bargain buying
Malaysian palm oil futures increased for the third consecutive session due to stronger rival Dalian and Chicago contracts and bargain buying. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 0.15% higher at 3,938 ringgit per metric ton. The ringgit weakened against the dollar, making palm oil cheaper for foreign buyers. Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price (Business Recorder).
KUALA LUMPUR: Malaysian palm oil futures edged higher on Thursday for a third straight session, buoyed by stronger rival Dalian and Chicago contracts and bargain buying.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 6 ringgit, or 0.15% higher at 3,938 ringgit ($844.16) a metric ton.
The contract opened 24 ringgit lower then traded mostly sideways despite softer rival edible oils, a Kuala Lumpur-based trader said.
The emergence of bargain buyers had brought the contract up to a high of 3,941 ringgit before it settled 1 ringgit lower at the midday close, the trader added.
Dalian’s most-active soyoil contract rose 0.76%, while its palm oil contract gained 0.53%. Soyoil prices on the Chicago Board of Trade were up 0.57%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil snaps two-day losing streak on rivals’ strength, higher export estimates
Oil prices extended gains, buoyed by a bigger-than-expected decline last week in crude stockpiles in the United States, the world’s largest oil consumer.
Firmer crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.11% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
Source Link : https://www.brecorder.com/news/amp/40313296
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