Palm oil prices rise in tandem with soyoil and a weaker Ringgit
The price of palm oil in Malaysia closed higher on the Dalian and Chicago exchanges, as well as a weaker currency.
The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 37 ringgit or 0.91% to 4,101 Ringgit ($965.40), a metric tonne, at the close.
Kuala Lumpur based trader stated that the market was in range bound mode but with a bias towards the positive due to the strength of rival oils and ringgit’s weakness.
Chicago Board of Trade Soyoil was up by 0.2%. Dalian's palm oil contract and most active soyoil contract both rose in value.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
The oil prices dropped on Wednesday after a 4% gain in the previous session as the markets assessed the possibility of disruptions to supply from the Iran-Israel war and pondered a direct US intervention.
Palm is less attractive as a biodiesel source due to weaker crude oil futures. The Malaysian Ringgit, which is the contract currency for palm, has fallen 0.12% in value against the U.S. Dollar, making goods denominated in ringgit more attractive to foreign currency holders.
Intertek Testing Services, a cargo surveyor, said that exports of Malaysian products containing palm oil for the period June 1-15 were up 26.3% compared to May 1.15. AmSpec Agri Malaysia is an independent inspection company and reported shipments increasing 17.8%.
(source: Reuters)
