Palm oil rises on Dalian soyoil strength
Malaysian palm oil futures edged higher, supported by gains in Dalian soyoil and a weaker ringgit. The benchmark January contract closed at 4,260 ringgit per ton. Indonesia’s palm oil stocks slipped to 2.54 million tons as lower production offset weaker exports. Traders await fresh market cues while technical signals suggest further upside.
JAKARTA: Malaysian palm oil futures inched higher on Thursday, tracking strength in Dalian soyoil market while a weakening ringgit added support.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was up 0.19percent at 4,260 ringgit (USD1,008.52) a metric ton at closing.
“The futures followed Dalian while waiting for new leads,” a Kuala Lumpur-based trader said. Dalian’s most-active soyoil contract rose 0.91percent, while its palm oil contract was down 0.07percent. Soyoil prices on the Chicago Board of Trade (CBOT) shed 1.46percent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Indonesia’s palm oil stocks dropped slightly in August to 2.54 million metric tons, 1percent lower than a month earlier, with falling output offsetting a decline in exports, Indonesia’s palm oil association GAPKI said.
The ringgit, palm’s currency of trade, weakened 0.24percent against the dollar, making palm oil more attractive to buyers ng channel and the hourly RSI, said Reuters technical analystholding foreign currencies. Palm oil is expected to bounce further into a range of 4,289-4,308 ringgit per metric ton, as suggested by a falli Wang Tao.
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Source : Business Recorder
