Market awaits MPOB data to see if VEGOILS Palm is moving higher

The price of Malaysian palm oils futures rose on Wednesday as the market awaited new monthly data.

By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had gained 5 ringgit (0.12%) to 4,148 Ringgit ($982.01 per metric ton).

The prices were slightly higher at midday, as the market awaited new palm data and information. The upward movement was capped by persistent concerns about the high palm end stocks in October," said a Kuala Lumpur based trader.

On November 10, the Malaysian Palm Oil Board is expected to release their monthly data.

Malaysian palm oil inventories are likely to have reached a new high of two years in October as production surged at its highest level in seven year, surpassing the export demand.

The stockpiles will have increased by 3.5% in the last month, to 2,44 million tonnes. This is the highest level since October 2023.

Dalian's palm oil contract, which is the most active contract, fell by 0.14%. Chicago Board of Trade Soyoil Prices grew by 0.57%.

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

Five dealers report that India's imports of palm oil fell to their lowest level in five months in October. This brought the total purchase for 2024-25 to its lowest point in five years. Buyers switched to soyoil following a rise in palm prices.

Palm oil is less appealing to foreign currency buyers because the ringgit (the palm's trade currency) has strengthened by 0.17% against dollars.

According to technical analyst Wang Tao, palm oil FCPOc3 will retest the support level of 4,106 ringgits per ton. A break below this could cause a drop into the range 4,044-4.083 ringgits. $1 = 4.2240 Ringgit (Reporting and editing by Sumana Nady and Rashmi aich; Reporting by Dewi Kuritawati)

(source: Reuters)