Palm oil ends the day higher than rival oils as market focuses on key data
Malaysian palm oil futures closed Monday after rival vegetable oils. The market is waiting for data from the Malaysian Palm Oil Board and export figures.
On the closing, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery gained 23 ringgit (0.47%) to 4,891 Ringgit ($1,119.22).
The futures prices seem to follow the support for Dalian palm oil. Once the MPOB data and export figures are released, we will determine our position. For now, it will be following the leads of rival oils," said a Kuala Lumpur based trader.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 1.46% while soyoil prices rose by 1.43%. Chicago Board of Trade soyoil prices were up by 0.32%.
As palm oil competes to gain a share of the global vegetable oil market, it tracks the price movement of competing edible oils.
The oil price rose by more than 2% Monday, as OPEC+ decided to delay plans to increase production by a whole month. Meanwhile, the market was preparing for a critical week which includes the U.S. Presidential election and a meeting in China.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's currency has strengthened by 0.11% against U.S. dollars, increasing the price of the commodity for buyers who hold foreign currencies.
Exports of palm oil products from Malaysia rose between 11.5% to 13.7% in October compared to a month before.
A trade ministry official said that Indonesia increased its crude palm oil price reference for November from $893.64 per metric ton to $961.97. The new price means that the November export tax will be $124 per metric ton.
(source: Reuters)
