Palm extends its gains on stronger Dalian oil, weaker ringgit
The price of Malaysian palm oils rose for the third consecutive session on Wednesday. This was boosted by gains in Dalian oil and a weaker currency.
By midday, the benchmark palm oil contract on Bursa Derivatives Malaysia Exchange for September delivery had risen 0.43% to $4166 ringgit (US$980.00). It had risen 2.12% over the two previous sessions.
A Kuala Lumpur based trader said that the palm was supported by gains in Dalian’s RBD Palm Olein and continued depreciation of local currency.
Dalian's palm oil contract rose 1.52%, while the most active soyoil contract in Dalian gained 0.30%. Chicago Board of Trade soyoil prices fell 0.54%
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
The palm ringgit's trade currency, the dollar, fell by 0.33%, making the commodity more affordable for buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil could test resistance at 4195 ringgit per tonne. A break above this level would lead to gains in the range of 4,219 to 4,233 ringgit.
A Malaysian competitor said that the lower tariffs on their products would allow them to gain more market share. ($1 = 4.2510 ringgit) (Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)
(source: Reuters)
