Palm oil vegoils a little higher than Dalian soyoil

Malaysian palm futures rose slightly on Thursday after losing ground the previous session, following the movement of soyoil at the Dalian Commodity Exchange.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange for February delivery rose by 1 ringgit or 0.02% to 4,064 Ringgit ($989.29).

Dalian's palm oil contract, which is the most active contract, rose 0.44% while soyoil gained 0.5%. Chicago Board of Trade soyoil prices fell by?0.82%.

Palm oil monitors the price changes of competing edible oils in its bid to capture a larger share of global vegetable oils.

Sinograin, China's stockpiler of state reserves, sold the majority of soybeans in an auction, according to two traders on Thursday. This made?room for a U.S. cargo influx expected amid abundant local supplies.

Malaysian palm oil stocks reached a six-and-a half-year high last November as production exceeded weak exports. This was revealed by data released on Wednesday by the industry regulator.

Malaysian palm oil production will surpass 20 million metric tonnes this year, thanks to improved harvesting efficiency, increased labour availability, and maturing plantations.

AmSpec Agri Malaysia, an independent inspection company, reported that exports of Malaysian products containing palm oil fell by 10.3% between November 1-10. Intertek Testing Services, however, said they were down 15%.

The palm industry's trade currency, the Malaysian ringgit (MYR), has strengthened by 0.19% versus the U.S. dollar, increasing the price of the commodity for holders of foreign currencies.

Oil prices fell on Thursday, as investors focused their attention back on the Russia-Ukraine talks and monitored any potential fallout of a U.S. seizing a sanctioned tanker off Venezuela's coast.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

(source: Reuters)