Palm rises against stronger Dalian and Chicago rivals
Malaysian palm futures rose Monday, tracking rival vegetable oil in Dalian and Chicago. Market participants were waiting for more information on Malaysian palm oils.
The benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange gained 8 ringgit or 0.2% to $3,925 ringgit (US$928.12) per metric ton.
A Kuala Lumpur-based broker said, "Today's crude Palm Oil Future is up. It tracks higher Dalian palm oils prices while we await tomorrow's MPOB results."
Tuesday, the Malaysian Palm Oil Board will publish data on Malaysia palm oils production, exports and stocks for May.
A poll suggests that inventories in the second-largest palm oil producer in the world are likely to increase for a third month in a row in May. This is due to a modest improvement in production.
Dalian's palm oil contract grew by 0.71%, while the most active soyoil contract increased by 0.67%. Chicago Board of Trade soyoil prices were up by 0.08%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
The palm ringgit's trade currency, the dollar, has weakened by 0.09%, making it slightly cheaper for foreign buyers.
Technical analyst Wang Tao stated that palm oil is neutral within a small range between 3,889 and 3,925 ringgits per metric tonne, but an escape from this narrow range could indicate a direction.
(source: Reuters)
