Palm snaps a four-day losing streak in Chicago soyoil strength
The market recovered after four consecutive sessions of losses on Wednesday, as the Chicago soyoil price and Dalian palm oils prices rose.
At closing, the benchmark palm oil contract on Bursa Derivatives Exchange for February delivery gained 32 ringgit (0.8%), or to $4,022 ringgit (US$972.91) per metric ton. In the previous session, it had reached its lowest level since July 2.
A Kuala Lumpur based trader said that the price of Bursa Malaysia CPO futures experienced a technical recovery after yesterday's steep fall. He added that Dalian palm oil was recovering and Chicago soyoil was strengthening.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.21%. Chicago Board of Trade soyoil prices were up by 0.34%.
Palm oil follows the price changes of other edible oils as it competes to gain a share in the global vegetable oil market. According to AmSpec Agri, an independent inspection company and cargo surveyor Intertek Testing Services, exports of Malaysian products containing palm oil for the period November 1-22 were down 16.4% to 18.8% compared with a month ago.
The oil prices rose slightly on Wednesday after falling to a one-month low in the previous session. This was due to signs that Ukraine and Russia are close to a deal that will likely result in the lifting of the international sanctions against Russian supplies.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
(source: Reuters)
