Palm ends stronger on soyoil at Dalian, Chicago
Malaysian palm futures closed higher Monday, following the strength of rival soyoil markets in Dalian and Chicago.
The benchmark contract for palm oil delivery in March on the Bursa Derivatives Exchange increased 113 ringgit or 2.57% to 4,504 Ringgit ($999.11).
A Kuala Lumpur trader stated that the market today is monitoring external performance of Dalian soyoil and Chicago soyoil.
Dalian's palm oil contract grew by 3.16%, while the most active soyoil contract grew by 2.81%. Chicago Board of Trade soyoil prices were up by 0.35%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.
China's soybean meal and oil futures posted their largest daily gain since 2023, while rapeseed and palm oil contracts also rose, following a rally that occurred in the Chicago Soy Complex after the release bullish USDA crop report.
Last Friday, the U.S. Department of Agriculture projected lower-than-expected U.S. soy production and reduced its soy ending stock due to a dry finish to the growing seasons. This sent Chicago soybean and soybean oil prices to multi-month-highs.
Malaysian palm oil stocks fell for the third consecutive month in December. They dropped 6.91%, to 1.71 millions metric tons. Crude palm oil production also declined 8.3%, and exports plummeted 9.97%.
According to cargo surveyors, Malaysian palm oil exports dropped between 21.4% and 26.68% from January 1-10.
Brent crude rose above $80 per barrel on Monday to reach its highest level in over four months. This was due to the increased U.S. sanctions against Russian oil, and the anticipated effects on exports of top buyers India, and China.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The Malaysian Ringgit, the palm industry's trade currency, dropped 0.33% in relation to the U.S. Dollar, making the commodity more affordable for buyers who hold foreign currencies.
(source: Reuters)
