Palm oil prices rise on stronger soyoil but production worries in Malaysia
Malaysian palm futures increased on Thursday due to higher soyoil and production concerns.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for December delivery had gained 92 Ringgit or 2.39% to $3,937 Ringgit ($925.92).
The contract increased 3% during the previous session. This is its largest single-session increase since July 24, 2023.
A Mumbai-based dealer stated that the rebound in soyoil is supporting Malaysian palm futures. Production concerns in Malaysia are also contributing to this support.
Dalian's palm oil contract grew by 2.49%, while the most active soyoil contract grew by 0.87%. Chicago Board of Trade soyoil prices were up by 0.12%.
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 0.24% compared to the U.S. Dollar, making it cheaper for foreign buyers.
Brent crude futures were up by 0.18% to $73.78 per barrel at 0504 GMT. Palm oil is more appealing as a biodiesel feedstock due to the firmer crude oil prices.
The Malaysian Palm Oil Council said that the price of crude palm oil is expected to stay stable in this month as tighter supplies are offset by a stronger ringgit and stagnant exports.
MPOC said that prices will be trading between 3,850-4,050 Ringgit per metric ton in September.
A leading importer said on Wednesday that despite the recent increase in import duties, cooking oils are still affordable.
Technical analyst Wang Tao stated that palm oil could retrace to the range of 3,819-3833 ringgits per metric tonne, after a rebound from the low point of 3,702 rings on Sept. 17. The bounce may end at resistance around 3,893 ringsgit.
(source: Reuters)
