Palm opens higher on stronger rival edible oils
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 32 ringgit (0.71%) to 4,519 ringgit ($1,020.09) per metric ton. Soyoil contracts on Dalian and the Chicago Board of Trade also saw gains. Weaker oil prices and a weakening ringgit made palm oil more affordable. However, technical analysis suggests palm oil may retrace toward 4,360 ringgit per ton.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 32 ringgit, or 0.71%, to 4,519 ringgit ($1,020.09) a metric ton in early trade.
Dalian’s most-active soyoil contract rose 0.99%, while its palm oil contract added 0.62%. Soyoil prices on the Chicago Board of Trade were up 0.05%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices eased after surging the day before as worries about the impact of intensifying tariff wars on global economic growth and energy demand outweighed the positive sentiment from a larger-than-expected draw in US gasoline stocks.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.09% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil is expected to retrace toward 4,360 ringgit per ton, as suggested by a retracement analysis and pointed by a rising trendline, Reuters technical analyst Wang Tao said.
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Source : Business Recorder
