Palmetto extends gains and hits a two-week high due to stronger Dalian palm oil
Malaysian palm oil futures rose to a new two-week high on Monday, continuing gains for the second consecutive session, supported by higher 'Dalian palm oil' prices.
The benchmark 'palm oil' contract for November delivery at the Bursa Derivatives exchange in Malaysia was up 50 Ringgit or 1.01% to 4,979 Ringgit ($1,231.21) per metric ton. This is the highest price since August 21.
A Kuala Lumpur-based trader stated that "the strength in Dalian palm olein supported crude palm oil, keeping the market in positive territory as we approached the midday closing."
Dalian's palm oil contract gained?1.39%, while the most active soyoil contract increased by 0.31%. Chicago Board of Trade will be closed on a public holiday.
Palm?oil monitors the price changes of competing edible oils as it competes to gain a share in the global vegetable oil market.
The price of oil was at a six-week high as the U.S. and Iran struck back with tit-fortat attacks on vessels in the Strait of Hormuz, among other places. This kept crude oil flow in the Middle East to a minimum.
Palm oil is a more attractive feedstock for biodiesel because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, has weakened by 0.07%, making the commodity slightly more affordable for buyers with foreign currencies.
Industry officials said that India's aggressive buying of vegetable oil has caused congestion in major ports. This can delay vessel unloading up to 10 days as shore tanks fill up and refiners struggle with clearing incoming cargo.
(source: Reuters)
