Palm prices rise by more than 1% as soyoil prices firm up
Malaysian palm-oil futures rose more than 1% on Tuesday, for the second session in a row, thanks to higher soyoil prices.
The benchmark palm-oil contract for?March delivery at the Bursa Derivatives Exchange rose 51 ringgit or 1.28% to 4,036 Ringgit ($994.09) per metric ton.
David Ng, a proprietary trading at the Kuala Lumpur-based trading company Iceberg X Sdn. Bhd., explained that crude palm oil was supported by a strong soybean oil market.
Dalian's soyoil contract with the highest volume rose by?0.49% while palm oil contracts increased by 1.85%. Prices of soyoil on the Chicago Board of Trade fell by 0.33%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing?edible?oils.
The oil prices were not affected by the recent Ukrainian attacks against Russian ships and piers. However, there was a slight increase in supply disruption concerns due to potential sales of Venezuelan Crude seized by US authorities.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
Ernest Gunawan said that Indonesia will blend 15.646 million kilolitres (? ) of palm-based biodiesel in 2026.
Intertek Testing Services, a cargo surveyor, estimated that exports of Malaysian products containing palm oil for the period?December 1-20 increased 2.4% compared to a month ago. AmSpec Agri Malaysia reported a decline in exports of 0.87%.
The palm ringgit's trade currency strengthened by 0.39% compared to the dollar. This made the commodity more costly for buyers who hold foreign currencies. ($1 = 4.0600 ringgit)
(source: Reuters)
