Palm oil surpasses Dalian rivals in price
Malaysian palm oils futures rose on Wednesday, after two sessions of falls. They followed gains in Dalian vegetable oil, and 'expectations that Malaysian palm stocks would decline by 'end-January' added support. The benchmark April palm oil contract on the Bursa Derivatives exchange gained 7 ringgit or 0.17% to 4,222 Ringgit ($1,074.57) per metric ton.
A Kuala Lumpur-based trader said, "Crude Palm Oil Future is tracking Dalian's movement while waiting for fresh leads at the Palm Oil Conference next week." Dalian's palm oil contract rose by?0.42% while the most active soyoil contract increased by 0.42%. The Chicago Board of Trade soyoil price barely changed, rising 0.09%.
As it competes to gain a share in the global vegetable oil market, palm oil follows?price changes of competing edible oils. A survey revealed that Malaysia's palm oils inventories will end their 10-month-long upward trend in January as exports surged during a seasonally slowdown in production.
According to data from cargo surveyor Intertek Testing Services and inspection company AmSpec?Malaysia, exports of Malaysian products containing palm oil were expected to have increased between 14.9% and 17,9% month-onmonth in January. India's palm-oil imports rose 51% in January, reaching a four-month-high. The tropical oil's discounted price compared to soyoil encouraged refiners to increase purchases, while reducing soyoil imports to a 19 month low.
According to Wang Tao, technical analyst, palm oil could test support at 4,201?ringgits per ton. A break below this level may trigger a drop into the range of 4,115 to 4,158 ringsgits.
(source: Reuters)
