Palm rises in third session due to weather and firm soyoil
The market for Malaysian palm oil futures rose for the third consecutive session on Tuesday as weather risks to production, along with higher soyoil price, supported the market.
By midday, the benchmark contract for?palm?oil delivery in November on the Bursa Derivatives Market had gained 28 ringgit or 0.56% to 5,006 Ringgit ($1,235.44).
Markets traded higher on persistent El Nino concerns and a?strengthening of soybean oil, according to David Ng, a proprietary?trader at Kuala Lumpur based?trading company Iceberg X Sdn Bhd.
He said, "We see support at 4,900 Ringgit and resistance at 5,080 Ringgit."
Dalian's palm oil contract increased 1.6% while the most active soyoil contract grew by 0.46%. Prices for soyoil on the Chicago Board of Trade rose by 0.88%.
Palm 'oil monitors the price movements of competing edible oils as it competes to gain a share in the global vegetable oil market.
Oil prices continued to rise as fears of a long-term conflict in the Middle East increased after Iran threatened retaliation against any new U.S. attack on its assets. This heightened concerns over disruptions to supply.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm?ringgit currency has weakened by 0.19% versus the dollar. This makes?the commodity?a little cheaper for buyers with foreign currencies.
Industry officials have reported that India's aggressive buying of vegetable oil has caused congestion in major ports. This can delay vessel unloading up to 10 days as shore tanks fill and refiners struggle with clearing incoming cargo.
Technical analyst Wang Tao stated that Palm?oil could revisit its August 21 high of 5,031 Ringgit per metric ton as the upward trend from 4,614 Ringgit may have resumed.
(source: Reuters)
