Palm oil prices rise in Dalian rival oils
The price of Malaysian palm oils futures increased on Thursday, after the previous session ended at a low for 17 weeks. This was due to the strength of rival edible oil on the Dalian Exchange.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had gained 21 ringgit or 0.51% to 4,129 Ringgit ($977.51) per metric ton.
Dalian's palm oil contract, which is the most active contract, gained 1.16%. Chicago Board of Trade Soyoil Prices were flat.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
The Brazilian Supreme Court has decided to suspend the ongoing legal proceedings regarding the so-called Soy Moratorium until a final ruling is reached on the issue.
India's rapeseed plantation is expected to reach a new record this year due to the Chinese purchasing record amounts of rapeseed meals and an above-average rain that has resulted into favourable soil moisture.
Palm oil is less appealing to foreign currency buyers because the ringgit (the palm's trade currency) has strengthened by 0.21%.
Technical analyst Wang Tao said that palm oil was expected to test the resistance zone between 4,145 and 4,169 ringgits per ton. A break above this could trigger a rise to 4,207 ringgits.
(source: Reuters)
