Palm tracks rival edible oils higher
Palm oil futures surged 1.81% to 3,987 ringgit per metric ton on Bursa Malaysia, driven by strong performances in rival oils and higher energy prices. Dalian’s soyoil rose 0.97% and palm oil gained 2.72%, while Malaysian June exports decreased by 11.8%. Indonesia raised July’s crude palm oil price to $800.75 per ton, impacting export taxes. Oil prices rose on supply deficit forecasts, influencing palm oil as a biodiesel feedstock amid global economic uncertainties.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 71 ringgit, or 1.81%, to 3,987 ringgit ($845.96) per metric ton by the midday break.
“The futures were seen trading sharply higher today, following gains and bullish momentum in rival oils. Uptick in energy prices is also a reason behind the bullish momentum,” said Anilkumar Bagani, research head of Mumbai-based Sunvin Group.
Dalian’s most-active soyoil contract rose 0.97%, while its palm oil contract gained 2.72%. Soyoil prices on the Chicago Board of Trade were up 1.64%.
Exports of Malaysian palm oil products for June fell 11.8% to 1,306,689 tons from 1,481,916 tons shipped during May, cargo surveyor Intertek Testing Services said on Friday.
Indonesia has set its crude palm oil reference price for July at $800.75 per ton, up from $778.82 in June. The new reference price would put the export tax for CPO at $35 per ton and levy at $85.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.
Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil looks neutral in a range of 3,899-3,927 ringgit per metric ton, and an escape could suggest a direction, according to Reuters’ technical analyst Wang Tao.
Source Link: https://www.brecorder.com/news/40310669/palm-tracks-rival-edible-oils-higher
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