Palm oil catches up with Dalian rivals, but stronger ringgit limits gains
Malaysian palm futures rose on Wednesday, after two straight sessions of declines. Gains in Dalian vegetable oils outweighed pressure from the stronger ringgit and?weakness Chicago soyoil.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for April delivery had gained 5 ringgit (0.12%) to 4,220 Ringgit ($1,075.16) per metric ton.
A Kuala Lumpur based trader said, "Crude Palm Oil Future?is monitoring Dalian's movement while waiting for new leads from the?Palm Oil Conference next week."
Dalian's palm oil contract grew 0.33%, whereas the most active soyoil contract gained 0.25 %. Chicago Board of Trade soyoil prices were down 0.18%.
As palm oil competes for a global share of the vegetable oils market, it tracks the price changes of competing?edible?oils.
The Malaysian Ringgit, the currency used to trade palm oil, has strengthened by 0.13% against U.S. dollars, increasing palm oil prices for holders of foreign currencies.
According to data from AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services, exports of Malaysian products containing palm oil were expected to have increased between 14.9% and 17,9% on a month-to-month basis in January.
Five dealers report that India's palm-oil imports rose 51% in January, to a record high. The tropical oil was cheaper than rival soyoil, which prompted refiners to increase their purchases, while reducing soyoil imports to a 19-month-low.
According to Wang Tao, technical analyst, palm oil could test support at a price of?4,201 per ton. A break below this level may cause a drop into the range between 4,115 and 4,158 ringgit.
(source: Reuters)
