Palm oil reaches a new high in the race against rival soyoil
The price of Malaysian palm oils futures rose on Wednesday, after gains made by rival soyoil in Dalian and Chicago helped to recover previous session losses.
The benchmark contract for palm oil delivery in October on the Bursa Derivatives exchange gained 62 Ringgit or 1.49% to $4225 ringgit ($996.46) per metric ton.
The futures opened higher today after a resurgent move in Chicago soyoil futures, ICE Canola futures and Euronext Rapeseed Futures on Tuesday night and a rise in Chicago soyoil prices and energy today in Asian hours, said Anilkumar bagani, research director at Mumbai-based vegetable oils broker Sunvin Group.
Prices of soyoil on the Chicago Board of Trade increased by 0.51%. Dalian's soyoil contract was the most active, and it rose by 0.37%. Palm oil contracts were down by 0.37%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
The palm ringgit's trade currency, the dollar, has weakened by 0.02%, resulting in a cheaper commodity for holders of other currencies.
Investors' concerns about the economic impact of U.S. tariffs on wider markets overshadowed signs of a stronger Chinese crude demand, which led to a stabilization in oil prices.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
AmSpec Agri Malaysia, an independent inspection company in Malaysia, estimates that exports of palm oil products from Malaysia for the period July 1-15 have dropped by 5.3% when compared to the period June 1-15. Cargo surveyor Intertek Testing Services expects a drop of 6.2%. $1 = 4.2400 Ringgit (Reporting and editing by Sumana Nandy, Harikrishnan Nair).
(source: Reuters)
