Palm rises on strong Dalian soyoil, crude oil prices
Malaysian palm oil futures opened higher, with the December contract rising RM16 to RM4,441/ton, supported by firmer crude oil and Dalian soyoil. Chicago soyoil’s weakness limited gains. Strong crude oil boosts palm as biodiesel feedstock, while September exports rose 8.7%. The ringgit’s slight dip made the commodity cheaper for foreign buyers.
KUALA LUMPUR: Malaysian palm oil futures opened higher on Monday, supported by stronger rival Dalian soyoil and firmer crude oil prices, though weaker Chicago soyoil limited the gains.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained RM16, or 0.36 per cent, to RM4,441 (US$1,055.37) a metric ton in early trade.
Dalian’s most-active soyoil contract rose 0.26 per cent, while its palm oil contract shed 0.15 per cent. Soyoil prices on the Chicago Board of Trade were down 0.06 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices inched up supported by geopolitical tension in Europe and the Middle East, although the prospect of more oil supply and concern about the impact of trade tariffs on global fuel demand weighed.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Cargo surveyor Intertek Testing Services estimated that exports of Malaysian palm oil products for September 1-20 rose 8.7 per cent compared with the same period a month earlier. AmSpec Agri Malaysia’s export estimates are expected later in the day.
The ringgit, palm’s currency of trade, weakened 0.1 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may retest support at RM4,401 per metric ton, a break below which could open the way towards the RM4,342 to RM4,366 range, Reuters technical analyst Wang Tao said.
Asian stocks inched up and the dollar was steady on Monday as traders pondered the US monetary policy path after the Federal Reserve’s rate cut last week, while President Donald Trump’s immigration crackdown on worker visas kept sentiment in check.
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Source : The Business Times
