Palm oil prices rise on Chicago soyoil firmer, but the ringgit is weak.

Malaysian palm futures rose on Wednesday, reversing earlier losses. A firmer Chicago soybean oil and a weaker ringgit boosted the market.

By midday, the benchmark palm oil contract on 'the Bursa Derivatives Exchange in Malaysia' rose 29 ringgit or 0.64% to a metric tonne of?4,575?ringgit? ($1,118.58).

A Kuala Lumpur based trader stated that the market was supported by a slight weakening of the ringgit and a recovery in rival soyoil.

Palm's trade currency, the ringgit (dollar), has fallen by 0.2%, making it cheaper for buyers who hold foreign currencies.

The Chicago Board of Trade reported a 0.29% increase in soyoil prices. Dalian's soyoil contract with the highest volume fell by 0.3% while palm oil prices dropped?0.45%.

Palm oil follows the price movement of competing edible oils as it competes to gain a share of?global vegetable oil market.

Prices of oil rose amid fears that the breakdown of talks between Iran and the U.S. to reach a final deal to end their war could cause supply disruptions throughout the Middle East.

Palm oil is a more attractive feedstock for biodiesel due to the stronger crude?oil prices.

A trade ministry regulation revealed that Indonesia set its crude palm oil reference price at $1,090.90 per tonne for July.

Analysts say that Indonesia's national B50 fuel mandate will begin on Wednesday, as part of the country's push to achieve energy independence. However, falling oil prices and more expensive palm oil are threatening its viability.

Technical analyst Wang Tao stated that palm oil could test support at 4,513 Ringgit per ton. A break below this level would trigger a drop into the range of 4,466-44,485 ringgit.

1 Please enter the freight rate from Peninsula Malaysia/Sumatra, and then press Enter, or click twice between the brackets. Double-clicking the codes between the brackets will allow terminal users to view futures and cash edible oil prices. To go back, hit F11. 1

(source: Reuters)