Palm oil prices rise on the back of bargain-buying and stronger Dalian oils

Malaysian palm oils futures rose for the fourth consecutive session on Thursday. This was boosted by Dalian oil's strength and bargain-buying.

The benchmark contract for palm oil delivery in February on the Bursa Derivatives exchange rose by 86 ringgit or 1.79% to 4,884 Ringgit ($1,099.01), a metric tonne, at the close.

Anilkumar bagani, Sunvin Group's research head, stated that the tight supply of palm oil is still a factor in the recovery of crude palm oil futures.

Separately, Kuala Lumpur based traders said that the overnight sale of Chicago soyoil spilled over to crude palm oil futures today, but the rise in Dalian oils stopped the prices from further falling.

Dalian's soyoil contract, which is the most active, rose by 0.1% while palm oil contracts gained 1.56%. Chicago Board of Trade closed on Thanksgiving Day.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.

The oil price was flat on Thursday, despite a sudden surge in gasoline stocks in the United States and a postponement from December 1 to 5 of OPEC+'s meeting on policy.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

The palm ringgit's currency has weakened by 0.09% against U.S. dollars, making it cheaper for foreign buyers. ($1 = 4.4440 ringgit)

(source: Reuters)