Palm oil increases by more than 2% compared to rival oils
The price of palm oil in Malaysia rose by more than 2% Tuesday due to the strength of rival oils.
The benchmark contract for palm oil delivery in January on the Bursa Derivatives Exchange rose 88 ringgit or 2.05% to 4,387 Ringgit ($1,014.34) per metric ton.
The contract has increased by 3.08% in two consecutive sessions.
A Kuala Lumpur-based dealer said that the gains in oilseeds seen overnight and morning trading supported palm prices.
Dalian's palm oil contract, which is the most active contract, gained 2.6% while soyoil prices rose 1.02%. Chicago Board of Trade soyoil prices rose 1.65%.
As they compete to gain a share in the global vegetable oil market, palm oil monitors prices of competing edible oils.
The palm ringgit's currency has weakened by 0.58% compared to the U.S. Dollar, making it cheaper for foreign buyers.
Oil prices remained near $74 a barrel, as U.S. secretary of state Antony Blinken redoubled his efforts to press for a ceasefire to be implemented in the Middle East. Meanwhile, China's slowing growth in demand continued to weigh on the market.
Palm oil is a better option as a biodiesel source because crude oil futures are stronger. $1 = 4.3250 Ringgit (Reporting and editing by Ashley Tang, Rashmi aich, Sumana Nandy and Subhranshu Sahu)
(source: Reuters)
