Palm snaps two consecutive sessions of losses, as export data lifts the market
The market for Malaysian palm oil futures ended two sessions of declines in a row on Monday as Dalian palm olein and Chicago soyoil rallied on the back of encouraging export data.
The benchmark palm-oil contract for December delivery at Bursa Derivatives Exchange rose 17 ringgit or 0.38% to 4,442 Ringgit ($1,057.62), a metric tonne, by the close.
A Kuala Lumpur-based broker said that the prices of crude palm oil rebounded after positive export figures for Chicago soyoil, Dalian palm olein and Dalian palm oil.
The trader stated that prices were supported further ahead of the Globoil industry conference in Mumbai, which will be held later this week.
Exports of Malaysian Palm Oil Products for the period September 1-20 increased between 8.3% to 8.7% in comparison with a similar period one month earlier.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.21%. Chicago Board of Trade soyoil prices were down by 0.47%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
The oil price was little changed, as fears over Russia and Middle East were offset by concerns about oversupply.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency strengthened by 0.1% versus the dollar. This made the commodity slightly more expensive for buyers who hold foreign currencies. ($1 = 4.2000 ringgit)
(source: Reuters)
