El Nino is worried about the counter-firm ringgit as well as palm oil.
The price of Malaysian palm oils futures was little changed on the following session after rising in the prior session. This is because stronger rival edible oils and worries over possible El Nino production disruptions offset an?increased ringgit.
The benchmark palm-oil contract for September delivery at Bursa Malaysia Derivatives Exchange dropped 1 ringgit or 0.02% to 4,549 Ringgit ($1,118.51), a metric tonne, by the close.
Market sentiment was lifted by higher soybean oil and Dalian Palm Olein prices. Concerns over El Nino weather risk in the coming months that may disrupt production patterns, also supported the market.
Dalian's palm oil contract grew by 1.53%, while the most active soyoil contract increased by?1.31%. Chicago Board of Trade soyoil prices were up by?0.14%.
As palm oil competes to gain a share in the global vegetable oil?market, it tracks the price movement of its rival edible oils.
Reports of attacks near the Strait 'Hormuz' have prompted fears that shipping along this vital energy transit route could be disrupted.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency strengthened by 0.37% against US dollars, making it slightly more expensive to buyers who hold foreign currencies.
The chief executive of Indonesian state planter PT Agrinas Palma Nusantara said that the company plans to add soybeans and cassava as well as bioethanol and biodiesel plants to its portfolio to support the government's renewable energies agenda.
1 Please enter the freight rate from Peninsula Malaysia/Sumatra to China, India Pakistan and Rotterdam and then press Enter or double-click between the brackets. Terminal users can view edible oil futures and cash prices by double-clicking on the codes in brackets. To move to the next page, press F12. To go back, hit F11. 1
(source: Reuters)
