Palm oil rebounds on stronger rival Dalian, Chicago contracts
Malaysian palm oil futures rose on Wednesday, buoyed by stronger Dalian and Chicago oil contracts, with the November delivery benchmark increasing by 0.57% to 3,736 ringgit ($854.14) per metric ton. Despite this, gains were limited by weaker export data and a firmer ringgit. Exports fell 18.4% to 866,641 metric tonnes for August 1-20, while the ringgit’s strength made palm oil less attractive to foreign buyers. Oil prices declined due to rising US crude inventories and reduced Middle East tensions.
SINGAPORE: Malaysian palm oil futures recovered on Wednesday, underpinned by firmer rival Dalian and Chicago edible oil contracts, although lacklustre export data and a firmer ringgit curbed gains.
Palm oil rises on bargain-hunting
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit, or 0.57%, to 3,736 ringgit ($854.14) a metric ton as of 0245 GMT.
Fundamentals
- ian’s most-active soyoil contract ticked up 0.33%, while its palm oil contract climbed 0.79%. Soyoil prices on the Chicago Board of Trade gained 0.41%.
- m oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
-ports of Malaysian palm oil products were 866,641 metric tonnes for Aug. 1-20, down 18.4% from July 1-20, cargo surveyor Intertek Testing Services said on Tuesday.
- Imorts dropped 16.7% to 834,948 tonnes over the same period, according to data from independent inspection company AmSpec Agri Malaysia on Tuesday.
- The Malaysian ringgit, palm’s currency of trade, strengthened 0.08% against the dollar, after touching its highest since February 2023 on Tuesday. A stronger ringgit makes palm oil less attractive for foreign currency holders.
- Oil prices slipped on estimates showing swelling US crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
- Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
- Palm oil may retest a resistance zone of 3,745-3,764 ringgit, a break above which could confirm both a target of 3,809 ringgit and an inverted head-and-shoulders, said Reuters technical analyst Wang Tao.
Source Link : https://www.brecorder.com/news/40318557/palm-oil-rebounds-on-stronger-rival-dalian-chicago-contracts
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