VEGOILS - Palm up as traders await further cues from the MPOB data
Malaysian palm futures edged higher on Thursday, after two sessions of falling prices. Traders awaited further clues from the Malaysia Palm Oil Board's (MPOB) supply and demand data.
At the midday break, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery gained 9 ringgit or 0.21% to 4,261 Ringgit ($993.24) per metric ton. The contract has fallen 2.1% over the last two sessions.
The Malaysian palm futures today will depend on how traders interpret the MPOB data. Let's wait," Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari said.
During the lunch break, the company released its September supply-demand data. The data showed that Malaysian palm oil stocks ended September at a level of 6.93% higher than the previous month. Crude palm oil production fell 3.80%, and palm oil exports increased 0.93%.
Dalian's palm oil contract, which is the most active contract in Dalian, rose by 0.39% while soyoil prices increased by 0.83%. Chicago Board of Trade soyoil prices were up by 0.14%.
As rival edible oils compete to capture a piece of the global vegetable oil market, palm oil closely tracks the price movement in their competitors.
The palm ringgit's trade currency, the dollar, fell by 0.33%, making the commodity more affordable for buyers who hold foreign currencies.
The rise in oil prices was attributed to a surge in fuel demand, as a major hurricane barreled into Florida, and concerns over potential supply disruptions across the Middle East due to increased tensions between Israel's major oil producer Iran and Israel.
Brent crude futures were trading at $77.15 per barrel as of 0533 GMT, up 0.74%. Palm oil is more appealing as a biodiesel feedstock due to the stronger crude oil futures.
Technical analyst Wang Tao stated that palm oil could bounce up to 4,293 Ringgit per ton as it failed to break the support at 4,206 Ringgit.
(source: Reuters)
