VEGOILS-Palm ends higher for second session on stronger rival oils
NEW DELHI, Oct 4 (Reuters) – Malaysian palm oil futures closed higher on Wednesday, extending gains to a second session after two days of losses, supported by stronger rival oils.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at 3,717 ringgit ($786.00) a metric ton at closing.
Palm oil futures dropped 6.06% in September after posting two consecutive monthly gains.
The Dalian Commodity Exchange is closed from Sept. 29 to Oct. 6 for the Mid-Autumn Festival and National Day.
Soyoil prices on the Chicago Board of Trade BOc2 were up 0.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Edible oil imports by India, the world’s biggest buyer of cooking oils, fell 19% in September from August’s record as refiners curtailed purchases of palm oil by 26% after inventories jumped to a record.
Indonesia’s Palm Oil Association expects a 5% increase in the country’s output of the commodity this year and sees stocks at around 3.2 million metric tons by the year-end.
Exports of Malaysian palm oil products for September were seen rising between 5.4% and 8.1%, data from independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services showed.
Indonesia raised its crude palm oil reference price to $827.37 a metric ton for the Oct. 1-15 period, which kept the export tax and levy for crude palm oil unchanged at $33 and $85 per metric ton.
Malaysian palm oil is expected to trade between 3,700 and 4,500 ringgit per metric ton from now until mid-2024, as an El Niño weather pattern threatens supplies amid rising demand, analysts said.
Palm oil FCPOc3 may revisit its Sept. 21 low of 3,637 ringgit per metric ton, as its bounce triggered by the support of 3,686 ringgit has almost been reversed. TECH/C
Oil fell on Wednesday, as Saudi Arabia’s announcement to continue crude output cuts to the end of 2023 was offset by demand fears stemming from macroeconomic headwinds. O/R
($1 = 4.7290 ringgit)
(Reporting by Mayank Bhardwaj; editing by Eileen Soreng)
((mayank.bhardwaj@thomsonreuters.com; +91-11-4954 8030; Twitter: @MayankBhardwaj9; Reuters Messaging: mayank.bhardwaj.thomsonreuters.com@reuters.net))
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