Malaysian palm oil rises on bargain buying
Malaysian palm oil futures rose for a fourth consecutive session, closing at 4,884 ringgit ($1,099.01) per metric ton. The increase was driven by stronger rival oils from Dalian and bargain buying amid tight palm oil supplies. While the Chicago soyoil market’s overnight decline affected palm oil prices initially, the recovery in Dalian’s palm oil and soyoil contracts prevented further losses. Additionally, a weaker ringgit against the US dollar made palm oil more affordable for foreign buyers.
KUALA LUMPUR: Malaysian palm oil futures rose for a fourth straight session on Thursday, buoyed by stronger rival Dalian oils and bargain buying.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 86 ringgit, or 1.79%, to 4,884 ringgit ($1,099.01) a metric ton at the close.
Crude palm oil futures were seen recovering, after opening lower, on bargain buying as tightness in palm oil supply persists, said Anilkumar Bagani, research head at Sunvin Group.
Separately, a Kuala Lumpur-based trader said the overnight sell-off in Chicago soyoil had a spillover effect on crude palm oil futures this morning, but the uptick in rival Dalian oils prevented prices from falling further.
Dalian’s most-active soyoil contract rose 0.1%, while its palm oil contract added 1.56%. The Chicago Board of Trade was closed for the Thanksgiving holiday.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices were flat on Thursday after a surprise jump in US gasoline inventories and postponement of the OPEC+ meeting on output policy to Dec. 5 from Dec. 1. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.09% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
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Source Link : Business Recorder
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