Palm oil reverses losses to end higher
Malaysian palm oil futures inched higher as bargain buying lifted prices after early losses. The February contract closed at 4,104 ringgit per ton, supported by slightly improved Dalian markets and stronger soyoil. A weaker ringgit enhanced buying interest. Traders expect this short-term buying momentum to continue over the next one to two weeks.
JAKARTA: Malaysian palm oil futures reversed early losses to close higher on Tuesday, supported by bargain buying and as the Dalian market pared losses slightly.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 11 ringgit, or 0.27 percent, at 4,104 ringgit (USD997.81) a metric ton at the close.
The contract fell 0.8 percent earlier in the session.
“There was bargain buying and this will continue for one to two weeks ahead,” a Kuala Lumpur-based trader said.
Dalian’s most active soyoil contract declined 0.85 percent, while its palm oil contract pared losses to 1.12 percent. Soyoil prices on the Chicago Board of Trade rose 0.21 percent.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
The Malaysian ringgit, palm’s currency of trade, weakened 0.07 percent against the US dollar, making the commodity cheaper for foreign currency holders.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : Business Recorder
