Palm prices rise on the back of bargains, but Dalian is stronger.

Malaysian palm oil futures recovered on Thursday due to bargain 'buying' after two consecutive sessions of declines, and stronger rival?Dalian oil. By midday, the benchmark palm oil contract for 'November delivery at?the Bursa Derivatives exchange was up 35 Ringgit or 0.72% to 4,887 Ringgit ($1,214) per metric tonne. Anilkumar bagani, commodity head at Sunvin Group, said that crude palm oil futures rose on the back of some bargain-buying after a recent steep drop. The contract dropped 3.31% in the last two sessions. Bagani said that fire hotspots are a growing concern for production losses in Indonesia's Kalimantan area next year, and recent rains could help palm production in Malaysia. Dalian's?palm-oil contract rose by 0.35%, while the most active soyoil contract grew by 0.94%. Chicago Board of Trade soyoil prices were down by 1.7%.

Palm oil follows the price movement of other edible oils as it competes to gain a share in the global vegetable oils markets. On Thursday, oil prices continued to fall, continuing a streak of losses on the expectation that talks between Iran & Qatar would open the Strait of Hormuz, and reduce the supply disruptions from the Middle East war.

Palm?is less attractive as a biodiesel feedstock due to weaker crude oil futures. The ringgit (palm's trade currency) fell 0.1% against the US dollar, which made?the commodity a little cheaper for buyers with foreign currencies. Exports of Malaysian Palm Oil Products for the period August 1-25 were down between 11.4% to?20% from a year earlier, according to cargo?surveyors. Technical analyst Wang Tao stated that palm oil may test resistance at 4,894?ringgits per metric ton. A break above this level could lead towards 4,947?ringgits.

(source: Reuters)