Palm oil prices end higher due to rival oils' strength and a weaker Ringgit
Malaysian palm futures closed higher on Wednesday. This was supported by gains made in vegetable oils that are competing with palm oil and the weaker ringgit. Investors will be looking for clues at an industry conference starting in Indonesia later this week, and data from the Malaysian Palm Oil Board due next week.
On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for January delivery gained 112 Ringgit (2.33%) to 4,918 Ringgit ($1,117.73).
The Kuala Lumpur trader said, "The futures markets are waiting for new data from the MPOB and Bali conferences next week."
The MPOB data will be released on November 11th, while the two-day Indonesian Palm Oil Conference begins in Bali on Thursday.
Dalian's palm oil contract, which is the most active contract, gained 0.48%. Chicago Board of Trade soyoil prices were up by 0.33%.
As palm oil competes to gain a share of the global vegetable oils industry, it tracks price changes in rival edible oils.
Vegetable oil became cheaper for foreign currency buyers when the ringgit, the palm's trade currency, fell by 1.38% to the U.S. Dollar.
India's palm-oil imports soared 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.
A survey shows that Malaysian palm oil inventories will fall in October. This is the first time in three months they have declined due to lower production and increased exports.
After two days of gains, oil prices dropped as much as 2 percent on Wednesday. The dollar soared as it was projected that Donald Trump would win the U.S. Presidential election. U.S. crude stock levels also rose higher than expected.
Palm oil is less appealing as a biodiesel source due to weaker crude oil futures. $1 = 4,4000 ringgit (Reporting and editing by Dewi Kuritawati, Subhranshu S Ahu and Vijay Kishore).
(source: Reuters)
