Palm oil contracts with Dalian are higher
Malaysian palm futures were up on Wednesday. They extended gains from their previous session and tracked the strength of their Dalian counterparts as well as the overnight Chicago soyoil.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for February delivery had gained 33 ringgit or 0.79% to 4,192 Ringgit ($1,015.75) per metric ton.
A Kuala Lumpur based trader stated that "Today's crude Palm Oil Future is cautiously tracking Dalian palm oils and getting support from firm Chicago soybean oil while waiting for a new lead for the markets."
Dalian's palm oil contract, which is the most active contract, rose by 1.46%. Chicago Board of Trade soyoil lost 0.28%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
A survey on Wednesday showed that Malaysia's palm oils inventories rose to more than a six-and-a half-year high during November as exports plummeted amid record production.
The Federal Land Development Authority of Malaysia (Felda), and its commercial arm FGV holdings Berhad, said that Terengganu State had issued them an order to vacate palm plantation land in the state. They warned it could affect operations and national production.
In November, India's imports of palm oil rose slightly as refiners increased purchases while reducing purchases of more expensive sunflower and soyoil.
According to technical analyst Wang Tao, palm oil could test resistance at 4,202 Ringgit per tonne. A break above this level would lead towards 4,274 Ringgit. $1 = 4.1270 Ringgit (Reporting and editing by Bernadette Cristina; Sumana Nady and Subhranshu S. Sahu).
(source: Reuters)
