Palm extends its gains over stronger rival edible oils and crude oil
The price of Malaysian palm oil futures rose for the?second consecutive session on Tuesday. This was largely due to the strength in rival edible oils traded in Chicago and Dalian, as well as higher crude 'oil prices.
By midday, the benchmark palm oil contract for?September delivery at the Bursa Derivatives Exchange had gained 41 ringgit (0.9%), or $1122.18 per metric ton.
A Kuala Lumpur-based broker said that "strong overnight gains in WTI Crude Oil and Chicago Soybean oil provided positive support for market sentiment."
Chicago Board of Trade Soyoil prices were up 0.3% following a 3.5% overnight surge. Dalian's soyoil contract, which is the most active contract in Dalian, rose by 0.2%.
As it competes to gain a share in the global vegetable oil market, palm oil closely tracks the price fluctuations of competing edible oils.
The price of oil rose by nearly 3% to its highest level in four weeks on Tuesday, as the U.S. increased its naval blockade of Iran and the two countries intensified their?attacks?in the Strait of Hormuz. This has led to an increase in uncertainty regarding energy flows.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
Palm's trade currency, the ringgit (dollar), has fallen by 0.2%, lowering the price of the commodity for foreign currency buyers.
The EU's anti-deforestation laws will apply to palm oil derivatives imported into the EU from December 2027. Leather will be exempted.
1 Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter. Or, double-click between brackets to view rates. Double?clicking the codes between the brackets will allow terminal users to see futures and cash edible oil prices. To move on to the next page in the chain, press F12. To go back, hit F11. 1
(source: Reuters)
