Palm oil surges more than 2pc on stronger rival oils
Malaysian palm oil futures rose over 2% on Tuesday, with the benchmark January contract closing at 4,387 ringgit ($1,014.34) per metric ton, up 88 ringgit (2.05%). This increase was supported by gains in rival oils, including a 1.02% rise in Dalian’s soyoil contract and a 1.65% increase on the Chicago Board of Trade. A weaker ringgit also made palm oil cheaper for foreign buyers, while steady oil prices near $74 a barrel enhanced palm’s appeal as biodiesel feedstock.
KUALA LUMPUR: Malaysian palm oil futures rose more than 2% on Tuesday, boosted by strength in rival oils. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 88 ringgit, or 2.05%, to 4,387 ringgit ($1,014.34) a metric ton at the close.
The contract has gained 3.08% for two consecutive sessions.
The gains seen in rival oilseeds overnight and in morning trade supported palm prices, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract added 1.02%, while its palm oil contract gained 2.06%. Soyoil prices on the Chicago Board of Trade climbed 1.65%.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, weakened 0.58% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices steadied near $74 a barrel as US Secretary of State Antony Blinken renewed efforts to push for a ceasefire in the Middle East and slowing demand growth in the world’s top oil importer, China, continued to weigh.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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