VEGOILS-Palm oil rises over 1% on strength in rival edible oils, weaker ringgit
SINGAPORE, March 6 (Reuters) – Malaysian palm oil futures rose on Wednesday, tracking the gains in rival edible oil prices, while a weaker ringgit also supported sentiment.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange rose 49 ringgit, or 1.23% to 4,035 ringgit ($851.27) a metric ton in morning trade. It had gained 0.33% overnight.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 rose 1.03%, while its palm oil contract DCPcv1 gained 1.68%. Soyoil prices on the Chicago Board of Trade BOcv1 increased 0.07%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The Malaysian ringgit MYR=, palm’s currency of trade, weakened 0.15% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
* Malaysia’s biodiesel production could rise to 1.8 million metric tons in 2024 if the government expands its 20% biodiesel mandatory programme to more areas in the country, the Malaysian Biodiesel Association said on Tuesday.
* The European Union scored a victory at the World Trade Organization on Tuesday as an adjudicating panel rejected a Malaysian complaint against an EU decision that biodiesel made from palm oil should cease to count as a renewable biofuel.
Source Link: https://www.nasdaq.com/articles/vegoils-palm-oil-rises-over-1-on-strength-in-rival-edible-oils-weaker-ringgit
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