Palm prices rise on Dalian Soyoil strength, and the weaker Ringgit
Malaysian palm futures were up on Wednesday. This was due to gains in Dalian Soyoil, a weaker Ringgit and an upcoming industry conference in Indonesia.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had gained 28 ringgit (0.58%) to 4,834 Ringgit ($1,098.64).
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 soyoil contract that was most active rose by 0.39% while palm oil contract fell by 0.08%. Chicago Board of Trade soyoil prices were down by 0.69%.
As palm oil competes to gain a share of the global vegetable oils industry, it tracks the price changes of competing edible oils.
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 a lower production and increased exports.
The palm oil price dropped by 1.38% when the ringgit, the currency used for trade in the palm industry, was weakened against the U.S. Dollar.
Oil prices dropped more than 1%, as the dollar strengthened on bets that the U.S. Presidential election would swing to Donald Trump's side even though it was too close to call. U.S. crude stock levels also rose more than expected.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
According to Wang Tao, technical analyst, palm oil could retrace into a range between 4,711 and 4,741 Ringgit per ton after failing to break through resistance at 4,883 Ringgit.
(source: Reuters)
