Palm snaps losing streak of two sessions on stronger soyoil
Malaysian palm futures ended higher on Monday after two sessions of declines. The price increase was boosted by the stronger soyoil.
The benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange gained 69 Ringgit or 1.81% to $3,884 Ringgit ($905.99), a metric tonne, at the close.
A Kuala Lumpur based trader reported that crude palm oil futures had been trading higher due to a recovery in the strength of rival oilseeds markets.
Dalian's palm oil contract, which is the most active contract, fell by 0.1%. Chicago Board of Trade soyoil prices rose 0.84%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
Palm's trade currency, the ringgit, has strengthened by 0.12% against the US dollar, lowering the price of the commodity for foreign currency buyers.
The oil price fell, due to the downgrade in Moody's sovereign credit rating for the United States and data showing a slowdown in China's retail sales and industrial output.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The Indonesia Palm Oil Association has urged the government not to raise the palm oil export tax, warning that it would harm the country's competitiveness in the face of global trade uncertainty due to U.S. Tariffs and geopolitical tensions. ($1 = 4.2870 ringgit)
(source: Reuters)
