Palm extends its gains on stronger Dalian oil, weaker ringgit
The price of Malaysian palm oils rose for the third consecutive session on Wednesday to its highest level in almost three months, boosted by Dalian oil gains and a weaker Ringgit. However, weak Chicago soyoil limited the gain.
At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery rose 0.27% to $4159 ($979.05).
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 1.45%, while the most active soyoil contract in Dalian gained 0.15%. Chicago Board of Trade soyoil prices were down by 0.74%
As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of competing edible oils.
The palm ringgit's trade currency, the dollar, fell by 0.26%, making the commodity more affordable for buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil could test resistance at 4195 ringgits per ton. A break above this level would lead to gains in the range of 4,219 to 4,233 ringgits.
A Malaysian competitor said that the lower tariffs on their products would allow them to gain more market share. $1 = 4.2480 Ringgit (Reporting and editing by Fransiska Naangoy, Bernadette Cristina; Subhranshu Saghu)
(source: Reuters)
