Palm oil prices rise on Dalian soyoil strength and weakening ringgit
Malaysian palm futures rose on Thursday as they tracked the strength of Dalian's soyoil markets, while the weakening ringgit also added support.
At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up by 0.19% to 4,260 Ringgit ($1,008.52) per metric tonne.
A Kuala Lumpur based trader stated that "the futures followed Dalian, while waiting for new lead."
Dalian's soyoil contract with the highest volume rose by 0.91%. Palm oil contracts were down 0.07%. Chicago Board of Trade Soyoil Prices fell 1.46%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
GAPKI, the Indonesian palm oil association, reported that Indonesia's stocks of palm oil fell slightly to 2,54 million metric tonnes in August, down 1% from a month before. The decline in exports was offset by a fall in production, GAPKI stated.
Palm oil is more appealing to foreign currency buyers because the ringgit (the palm's trade currency) has weakened by 0.24% compared to the dollar.
According to Wang Tao, a technical analyst, palm oil prices are expected to rise further, indicating a price range between 4,289-4308 ringgits per metric tonne, as indicated by a falling channel, and hourly RSI.
(source: Reuters)
