Palm oil reaches a new high in a week on the strength of rival oils and crude
The market was supported by stronger prices for rival edible oils and crude oil.
The benchmark palm oil contract for October delivery at the Bursa Derivatives Exchange in Malaysia gained 66 Ringgit (1.43%) to 4,695 Ringgit ($1,146.80), the highest closing price since July 24. The contract dropped 1.15% over the last two sessions.
A Kuala Lumpur trader stated that the?recovery of crude oil prices and firmer oilseed markets supported Crude?palm Oil futures.
The trader said that "the combination of these external factors helped lift the market sentiment."
Dalian's palm oil contract, which is the most active contract in Dalian, rose by 0.23%. Prices of soyoil on the Chicago Board of Trade rose?0.56%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
Oil prices increased by more than 2%, as a diplomatic solution to the U.S./Iran conflict remained in doubt and disruptions?to oil flow through key shipping routes continued.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's currency has weakened by 0.02% against?U.S. dollar, making the commodity slightly cheaper to buyers with foreign currencies.
A survey shows that Malaysian palm oil inventories will 'have reached a five-month peak in July as production growth has outpaced the robust demand.
Statistics Bureau data show that Indonesia exported 11,28 million metric tonnes of crude and refined palm oils from January to June, an increase of 2.5% over the same period last year.
(source: Reuters)
