The price of VEGOILS - Palm remains flat while traders wait for MPOB demand and Supply data
The price of palm oil in Malaysia remained flat on Tuesday as a result of the 'weather risk' to production. Soyoil prices were also higher. Traders are now waiting for upcoming data from the industry regulator regarding 'demand and supply.
The benchmark palm-oil contract for November delivery at Bursa Malaysia's Derivatives exchange fell by 1 ringgit or 0.02% to 4,977 Ringgit ($1,226.77) per metric ton.
Markets traded higher on persistent El 'Nino weather worries combined with the strength of soybean oil, according to David Ng, a proprietary trader? at Kuala Lumpur based trading firm Iceberg X Sdn Bhd.
The Malaysian Palm Oil Board is expected to release its August supply and demand data on Thursday.
Dalian's palm oil contract grew by 1.37%, while the most active soyoil contract rose by 0.51%. Chicago Board of Trade soyoil prices were up by 0.82%.
As palm oil competes to gain a share in the global vegetable oils market, it tracks the price fluctuations of competing edible oils.
Oil prices have risen to multi-week-highs since Iran-backed Houthis attacked Saudi oil facilities, and Tehran threatened the United States by threatening "economic war".
Palm oil is a good option as a biodiesel feedstock because of the higher crude oil prices.
The palm ringgit's trade currency, the?dollar, has weakened by 0.32%, making it slightly cheaper for buyers holding foreign currencies.
Industry officials have reported that India's aggressive buying of vegetable oil has caused congestion in major ports. This can delay vessel unloading up to ten days, as shore tanks fill and refiners struggle with clearing incoming cargo.
(source: Reuters)
