Palm oil heads for third-week gain over strong rival oils
The market recovered from a three day slide on Friday, helped by the overnight strength of rival Dalian edible oils and Chicago edible oil. Strong exports and marginal production growth also added support.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for delivery in November had gained 37 ringgit or 0.83% to 4,497 Ringgit ($1,063.62) per metric ton.
This week, the contract has gained 0.56%.
"Our production is a bit low in August." "Preliminary figures are showing a marginal growth of 2-3% and exports for August and Septembre will be robust," said Paramalingam Supramaniam at Selangor brokerage Pelindung Bestari.
Dalian's soyoil contract, which is the most active contract in Dalian, rose by 0.52%. Palm oil contracts fell by 0.17%. Soyoil prices on the Chicago Board of Trade decreased 0.26%, after a surge of 4.73% the previous session.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.
Four sources who have direct knowledge of this matter confirmed that Indian importers bought palm oil for the first-time from Colombia and Guatemala, as producers with surplus stocks offered to sell cargoes on a steep discount.
Data from Intertek Testing Services, a cargo surveyor, and AmSpec Agri Malaysia, an inspection firm and inspection company.
Two sources familiar with Trump's plans say that the administration will rule as soon as Friday on a backlog of requests for relief from U.S. Biofuel Laws from small oil refiners. However, it will defer a decision as to whether or not larger refiners are required to compensate by increasing their own biofuel blend.
The palm oil price has dropped for holders of foreign currencies due to the ringgit's depreciation against the U.S. Dollar.
Technical analyst Wang Tao stated that palm oil is neutral between 4,475 and 4,542 ringgits per ton. An escape from this range could indicate a direction.
(source: Reuters)
