Malaysian palm oil higher
Malaysian palm oil futures rose for a third straight session, with the January contract closing up 6 ringgit (0.14%) at 4,151 ringgit per tonne. A weaker ringgit and bullish outlooks from the Indonesia Palm Oil Conference supported prices, despite weaker Malaysian export estimates and softer crude oil, which limits biodiesel demand.
KUALA LUMPUR: Malaysian palm oil futures ended slightly higher on Monday for a third consecutive session, as a softer ringgit and bullish forecasts from leading industry analysts supported the market. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 6 ringgit, or 0.14 percent, to 4,151 ringgit (USD1,000.72) a metric ton at the close.
The contract is seeing support following bullish presentations at the Indonesia Palm Oil Conference last week, a Kuala Lumpur-based trader said.
Analysts flagged that palm oil prices may increase in the coming months on uncertainties stemming from land seizure policies and a biodiesel plan by top producer Indonesia.
Meanwhile, the ringgit, palm’s currency of trade, weakened 0.44 percent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian’s most-active soyoil contract fell 0.14 percent, while its palm oil contract gained 0.18 percent. Soyoil prices on the Chicago Board of Trade were up 0.28 percent. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Cargo surveyors estimated that exports of Malaysian palm oil products for November 1-15 fell between 10percent and 15.5percent from a month earlier.
Oil prices fell, erasing last week’s gains, as loadings resumed at the key Russian export hub of Novorossiysk, after a two-day suspension at the Black Sea port that had been hit by a Ukrainian attack. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Source : Business Recorder
