Palm oil prices rise on Dalian, Chicago firmer oils
The Dalian and Chicago exchanges saw higher vegetable oil prices, which influenced the palm oil futures in Malaysia.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for July delivery gained 60 ringgit (1.54%) to 3,953 Ringgit ($916.74) per metric ton. This was the highest closing since April 28.
A Kuala Lumpur based trader said that palm futures prices were higher due to the spread adjustment in comparison with vegetable oils. He added that bargain-buying activities had also helped prices.
Dalian's soyoil contract with the highest volume rose by 0.82% while palm oil contracts for September delivery increased by 1.62%. The Chicago Board of Trade's (CBOT) soyoil price rose by 0.47%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the prices for rival edible oils.
Data from the industry regulator revealed on Tuesday that Malaysian palm oil stocks reached a six-month high in April, as production surged at a decade-high level for the month. However, local consumption fell.
The palm ringgit's currency gained 0.23% in early trading on Wednesday against the U.S. Dollar, making it more expensive for buyers with foreign currencies.
Technical analyst Wang Tao stated that palm oil could test the resistance zone of 3,972-3,978 Ringgit per metric tonne. ($1 = 4.3120 ringgit)
(source: Reuters)
