Palm oil continues to gain on rival oil, ringgit weakens
The ringgit was weaker and Dalian edible oils were stronger.
At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery rose 25 ringgit (0.54%) to 4,671 Ringgit ($1,126.63).
The contract reached 4,703 ringgit at the beginning of the session. This was its highest level since May 6 before reducing gains.
A Kuala Lumpur trader said that palm rose due to a weaker ringgit and Chicago soyoil. However, gains were limited by the weakness of crude oil.
Prices for Soyoil on the Chicago Board of Trade rose by 0.89%. The palm oil contract on the Dalian Commodity Exchange rose 0.45% while the most active soyoil contract fell 0.07%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Palm's trade currency, the ringgit (?0.29%) against the dollar has weakened, making it more attractive to buyers with foreign currencies.
Exports of Malaysian Palm Oil Products?for the period June 1-20 rose 19.1% compared to a previous month, according to cargo surveyor Intertek Testing Services. Meanwhile, independent inspection company AmSpec Agri Malaysia reported that shipments for the same time period grew 25% on a regular basis.
Brent crude prices?fell 2% following the conclusion of U.S.-Iran negotiations in Switzerland. Tehran claimed to have secured waivers 'for oil and petrochemicals exports. This eased concerns about a global supply shortage.
Palm oil is less appealing as a biodiesel feedstock due to lower crude oil futures.
(source: Reuters)
