Palm trades at a tight range while traders wait for price outlook
Malaysian palm futures were traded in a narrow range on Friday as traders awaited top analysts' price forecasts at an industry conference later that day in India.
At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery fell 8 ringgit or 0.18% to 4,431 Ringgit ($1,050.75) per metric ton. The contract has risen 0.63% this week, after two consecutive weekly declines.
A Kuala Lumpur based trader reported that the palm oil market was not very active today. Participants were cautious in anticipation of the price forecasts from palm analysts at the Globoil Conference.
Dalian's palm oil contract, which is the most active contract, rose 0.8%. Chicago Board of Trade soyoil prices were down by 0.4%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
The price of crude oil is on the rise, and on course to reach its highest rate since early June. Ukraine's attacks against Russia's energy infrastructure are pushing Moscow to restrict fuel imports and cut crude production.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, fell by 0.09%, making the commodity more affordable for buyers who hold foreign currencies.
Dealers said that India bought 300,000 metric tonnes of soyoil in Argentina on Tuesday and on Wednesday. This was the largest purchase ever made within a two-day time period. They took advantage of Buenos Aires’ decision to abolish export taxes on soybeans, and other food products.
Technical analyst Wang Tao suggested that the wave pattern of palm oil and projection analysis could indicate gains in the range 4,479-4492 ringgits per metric tonne.
(source: Reuters)
