Palm oil gains on Dalian rivals but Chicago soyoil is weak.
Malaysian palm futures rose Monday, following rival Dalian oils, although a weaker Chicago soyoil cap gains. Market participants were waiting for Malaysian palm data to provide further clues.
By midday, the benchmark contract for palm oil delivery in August on the Bursa Derivatives Market gained 30 ringgit or 0.77% to $3,947 Ringgit ($932.00).
A Kuala Lumpur based trader stated that "Today's crude Palm Oil Future is up tracking higher Dalian palm oils prices while we await tomorrow's MPOB results."
The Malaysian Palm Oil Board will publish data on Malaysia palm oils production, exports, and inventories on Tuesday.
A poll suggests that inventories in the second-largest palm oil producer in the world are expected to increase for a third month in a row in May. This is due to a modest improvement in production.
Dalian's palm oil contract also rose by 0.57%. Chicago Board of Trade soyoil prices were down by 0.13%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Chicago soybean and corn contracts eased as both markets gave up some of the gains made last week, as attention turned to U.S. China talks, which are crucial for agricultural trade between these two countries.
Early on Monday, oil prices maintained the gains made last week as investors awaited U.S. China trade talks that would take place later in the day.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, has weakened by 0.24%, making it slightly cheaper for foreign buyers.
Technical analyst Wang Tao stated that palm oil is neutral within a small range between 3,889 and 3,925 ringgits per metric ton. An escape from this narrow range could indicate a direction.
(source: Reuters)
