Palm oil futures are up on the back of gains in rival oils and ringgit weakness
The price of Malaysian palm oils futures rose on Wednesday as a result of the strength of soyoil in Dalian and Chicago. Weakness?in ringgit also added to support.
By midday, the benchmark contract for?palm?oil delivery in March on the Bursa Derivatives Exchange had gained 14 ringgit or 0.35% to 4,004 Ringgit ($988.64).
A Kuala Lumpur based trader stated that "Bursa CPO opened slightly?higher" by tracking spread movements against competing oilseeds, while adding that the lackluster performance of rival oilseeds, and the energy complex, may limit upside potential.
Dalian's most active soyoil contract increased by 0.63% while its palm oil contract rose by 0.26%. The Chicago Board of Trade's?price for soyoil rose by 0.43%.
As palm oil competes to gain a market share on the global vegetable oil market, it tracks the price changes of competing edible oils. The Malaysian Ringgit, which is the contract currency for?trade, has weakened by 0.15% versus the U.S. Dollar, making palm oils cheaper for holders of foreign currencies.
The oil prices declined on Wednesday, after U.S. president Donald Trump announced that Venezuela would "turn over" between 30 and 50 million barrels sanctioned crude to the United States.
Palm oil became less attractive as a biodiesel feedstock due to lower crude oil prices.
Technical analyst Wang Tao stated that palm oil is neutral between 3,975 and 4,024 ringgits per metric tonne, but an escape from this range could indicate a new direction.
(source: Reuters)
