Dalian palm oil is supported by other oils
The Dalian palm oil market, which is a rival to the Malaysian palm oils market, has seen gains on Thursday.
On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for January delivery gained 33 ringgit (0.67%) to 4,950 Ringgit ($1,125.00).
Dalian's palm oil contract, which is the most active contract, gained 2.8% while soyoil prices rose by 1.78%. Chicago Board of Trade soyoil prices were down by 0.56%.
As palm oil competes to gain a share of the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
Edi Wibowo from the Energy and Mineral Resources Ministry's bioenergy department told a conference of the industry on Thursday that Indonesia is proposing to raise the mandatory blend of palm-oil-based fuel to biodiesel up to 50% by 2028.
A group of industry experts said that India's imports of vegetable oil will continue to fall in 2024-25, to 15 million tonnes, due to the favorable weather conditions, which are expected to boost the domestic production.
India's palm-oil imports increased by 59% to a 3-month high in October, as refiners increased purchases to replenish stock depleted due to lower-than-usual imported in recent months.
On the closing, the ringgit, the palm's currency, was flat against the U.S. Dollar. The ringgit's weakness makes vegetable oil more affordable for foreign currency buyers.
The price of oil held steady Thursday, despite a drop in prices triggered by the U.S. Presidential election. A stronger dollar and lower crude exports to China offset supply risks posed by a Trump presidency as well as Hurricane Rafael's impact on production.
Palm oil is a better option as a biodiesel source because crude oil futures are stronger. $1 = 4,4000 ringgit (Reporting and editing by Dewi Kurianawati, Varun H. K. and Vijay Kishore).
(source: Reuters)
