Palm rebounds on stronger rival oils
Malaysian palm oil futures rose 1.46% to 4,710 ringgit per metric ton, driven by gains in rival edible oils on global markets. Dalian and Chicago soyoil contracts also increased, supporting palm oil prices, which are influenced by competing edible oils. Crude oil near two-week highs added slight support, though weaker crude futures and a strengthening ringgit pose challenges. Export data for Nov. 1-20 and technical analysis suggest potential downside risks, with support at 4,595 ringgit.
KUALA LUMPUR: Malaysian palm oil futures opened higher on Monday after three consecutive sessions of declines, buoyed by stronger rival vegetable oils.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 68 ringgit, or 1.46 per cent, to 4,710 ringgit (US$1,056.76) a metric ton in early trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract rose 0.15 per cent, while its palm oil contract added 0.75 per cent. Soyoil prices on the Chicago Board of Trade were up 1.15 per cent.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* Oil prices hovered near two-week highs following 6.0 per cent gains last week, as geopolitical tensions heightened between western powers and major oil producers Russia and Iran, raising risks of supply disruption.
* Brent crude futures for January were down 0.36 per cent at US$74.90 a barrel as of 0247 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit, palm’s currency of trade, strengthened 0.11 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* Cargo surveyors are scheduled to release their export data for Nov. 1-20 later in the day.
* Palm oil may test support at 4,595 ringgit per metric ton, with a good chance of breaking below it and falling towards 4,510 ringgit, Reuters technical analyst Wang Tao said.
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Source Link : Business Times
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