Palm oil rises as rival crudes and oils are firmer
The price of Malaysian palm oil futures rose a little bit on Tuesday, boosted by higher prices for rival edible oils as well as crude oil.
By midday, the benchmark 'palm oil contract' for?October delivery at the Bursa Derivatives Exchange had gained 37 ringgit (0.8%), to 4,666 Ringgit ($1,140.27).
A Kuala Lumpur based 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 rose by 0.39%, while the most active soyoil contract increased by 0.51%. Chicago Board of Trade soyoil prices were up 0.29%.
As palm oil competes for a piece of the global vegetable oil market, it tracks the price movement of competing?edible oils.
The oil prices rose 1% after a steep drop in the previous session. This was due to concerns about Middle East supply, as a diplomatic solution to the U.S. - Iran war that 'has disrupted shipments' still seems out of reach.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's currency has risen 0.07% against the dollar, making it slightly more expensive to buyers who hold foreign currencies.
A survey revealed that Malaysian palm oil inventories were expected to have reached a five-month record in July as production growth exceeded robust demand.
Statistics Bureau data show that Indonesia exported 11,28 million metric tons of crude and refined Palm?oil from January to June, an increase of 2.5% compared with the same period last year.
(source: Reuters)
