Palm oil rangebound against rival oils as market eyes key data

Malaysian palm oil futures were sideways Monday as they followed rival vegetable oils while the market awaited data from the Malaysian Palm Oil Board and export figures.

During the midday break, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange gained 1 ringgit or 0.02% to 4,869 Ringgit ($1,116.74).

The futures prices seem to follow the support for Dalian palm oil. Once the MPOB data and export figures are released, we will determine our position. For now, it will be following the leads of rival oils," said a Kuala Lumpur based trader.

Dalian's palm oil contract, which is the most active contract, gained 0.98%. Chicago Board of Trade soyoil prices were up by 0.11%.

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

The oil prices continued to rise on Monday. They rose more than $1 after OPEC+ decided to delay plans to increase production by a whole month. Meanwhile, the market was preparing for a busy week, which includes a U.S. Presidential election and a meeting in China.

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

The palm ringgit's currency has strengthened by 0.34% in relation to the U.S. Dollar, increasing the price of the commodity for buyers who hold foreign currencies.

Exports of palm oil products from Malaysia rose between 11.5% to 13.7% in October compared to a month before.

A trade ministry official said that Indonesia increased its crude palm oil price reference for November from $893.64 per metric ton to $961.97. The new price means that the November export tax will be $124 per metric ton.

Technical analyst Wang Tao predicted that palm oil could surge to a range of 4,936-5 ringgit per kilogram, driven by wave C.

(source: Reuters)