Palm oil futures in Malaysia rise on Dalian's market.
The price of Malaysian palm oils futures increased for the second session in a row on Wednesday. This was fueled by the strong Dalian vegetable oil contract. However, the market focus was on the November poll conducted among planters and analysts to determine the direction.
At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for February delivery gained 47 ringgit or 0.93% to $5,122 ringgit (1,148.17 USD) per metric ton.
A Kuala Lumpur based trader stated that the market tracks the gains in vegetable oil on the Dalian Commodity Exchange.
Dalian's palm-oil contract increased by 1.07% while its most active soyoil contract grew by 0.05%. Chicago Board of Trade Soyoil fell 0.57%.
The trader said that the price increase was limited by the weakness of Chicago soyoil, and the stronger Malaysian Ringgit, which is the contract's trade currency, which gained 0.13% in relation to the U.S. Dollar.
Palm oil becomes less appealing to foreign currency holders due to a stronger Ringgit.
Five dealers reported that India's edible oils imports in November rose to the highest level in four months, as refiners increased purchases of palm, soyoil, and sunflower oil in order to replenish their inventories following a robust demand during the festival season.
According to Intertek Testing Services, a cargo surveyor and AmSpec Agri Malaysia, an independent inspection company, the Malaysian palm oil imports are expected to fall between 9.3% and 10% in November.
Indonesia increased its crude palm oil reference price (CPO) for December from $961.97 a metric tonne in November to $1,071.67, putting the export tax at $178 a ton.
Palm oil prices are expected to return to their highs of 5,202 Ringgit per metric tonne, which they reached on 11 November. They have broken through the resistance level at 5,124 Ringgit.
(source: Reuters)
