Palm trades are rangebound before MPOB data
Malaysian palm oils futures were trading in a narrow range on Monday, despite the weaker export numbers weighing on markets. Traders are also waiting for supply and demand data from Malaysia Palm Oil Board (MPOB).
At the midday break, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery gained 1 ringgit or 0.02% to 4,110 Ringgit ($973.01), a metric tonne. The contract dropped 0.96% during the previous session.
Palm prices narrowed gains after
export data
A Kuala Lumpur based trader reported that the cargo surveyor Intertek Testing Services' (ITS) report showed a decline.
ITS estimates that the exports of Malaysian Palm Oil Products for November 1-10 dropped 12.3% compared to the same period a year earlier. AmSpec Agri Malaysia is expected to release its export estimates later today.
Later in the day, the Malaysian Palm Oil Board is expected to release its October demand and supply data.
Dalian's palm oil contract, which is the most active contract, gained 0.3. Chicago Board of Trade soyoil prices rose 0.3%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Oil prices rose amid optimism that the U.S. shutdown may end soon, boosting demand in the top oil-consuming country of the world and offsetting worries about rising global supplies.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency strengthened by 0.22% against dollars, making it slightly more expensive to buyers who hold foreign currencies.
China's customs authority announced that it will begin lifting its ban on U.S. log exports and restoring soybean import licenses to three U.S. companies starting November 10. This is another sign of the easing of trade tensions between China and the United States.
Technical analyst Wang Tao predicted that palm oil would retest the resistance level of 4,124 ringgit a ton. A break above this could lead to gains up to 4,196 ringgit.
(source: Reuters)
