Palm oil rangebound on rival oils
Malaysia Palm Oil Futures traded sideways in on Monday, tracking rival vegetable oils, while the market awaits data from Malaysian Palm Oil Board (MPOB) and export figures.
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The benchmark palm oil contract for January delivery at the Bursa Malaysia Derivatives Exchange rose to 4,869 ringgit ($1,116.74) a metric ton during the midday break, up 1 ringgit, or 0.02%.
Dalian Palm Oil
“The futures seem to be following Dalian palm oils support. We will establish our lead once the MPOB and export data are out. For the time being it should be tracking leads from rival oils,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 1.43%, while its palm oil contract gained 0.98%. Soyoil prices on the Chicago Board of Trade were up 0.11%.
Edible Palm Oil: Palm oil rangebound on rival oils
Palm oil tracks the prices of other edible oils as it competes for a share in the global vegetable oils market.
Palm closed 3% higher, highest in almost two and a half years.
Oil prices rose on Monday by more than $1 a barrel after OPEC+ agreed to delay by one month its plans to raise output, as the market prepared for a week with a U.S. presidential election and a key meeting in China.
Stronger crude oil futures make palm more attractive as a feedstock for biodiesel.
The ringgit, palm’s currency of trade, strengthened 0.34% against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
Malaysian palm oil products rose
Cargo surveyors estimate exports of Malaysian palm oil products rose between 11.5% and 13.7% in October, compared with a month earlier.
The Indonesian trade ministry official said that the country hiked its crude palm oil reference price for November to $961.97 per metric ton from $893.64 in October. This means that the export tax for November will be at $124 per ton.
The palm oil may surge to 4,936-5,023 ringgit per metric ton, driven by a powerful wave C, according to Reuters technical analyst Wang Tao.
Palm oil rangebound on rival oils
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