Palm extends its gains over stronger rivals edible oils and crude oil
The price of Malaysian palm olein futures rose a second time on Tuesday. This was largely due to the strength in rival edible oils traded on the Chicago and Dalian exchanges, as well as higher crude oil prices.
The benchmark contract for palm oil delivered in September on the Bursa Derivatives Exchange rose 40 ringgit or 0.88% to 4,573 Ringgit ($1,121.93).
A Kuala Lumpur based trader stated that "strong overnight gains in WTI Crude Oil and Chicago Soybean oil provided positive market sentiment."
Chicago Board of Trade Soyoil Prices were up 0.47 percent after a surge of 3.35% overnight. Dalian's palm oil contract grew by 0.95%, while the most active soyoil contract increased 0.4%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price movements of competing edible oils.
The price of oil rose to its highest level in four weeks on Tuesday, following the U.S.'s re-imposition of a naval embargo against Iran. Meanwhile, renewed attacks between Washington and Tehran raised concerns about energy flows through Strait of Hormuz.
Palm oil is a better option than crude oil for biodiesel because of the stronger futures prices.
Palm's trade currency, the ringgit (dollar), has fallen by 0.2%, lowering the price of the commodity for foreign currency buyers.
A leading industry group said that India's palm oils imports dropped to a record low of 14 months in June due to the collapse of demand and a shrinking discount on rival oils, which prompted buyers cut their purchases.
The European Commission announced?on?Monday that imports of palm oil derivatives into the EU will be subject to the bloc's anti deforestation laws from December 2027. Leather will not be affected by the law. 1 Please enter the freight rate for Peninsula Malaysia/Sumatra from China, India, Pakistan, and Rotterdam and then press Enter. Or, double-click between the brackets. Double-clicking on the codes between the brackets will show terminal users edible oil prices in cash and futures. To move to the next page, press F12. To go back, hit F11. 1
(source: Reuters)
