VEGOILS-Malaysian palm oil rises, tracking Dalian
Malaysian palm oils futures rose Thursday after reversing their losses at midday, following the Dalian exchange's rival edible oils, as the market awaited more catalysts.
The benchmark palm oil contract for October delivery on the Bursa Malaysia derivatives exchange gained 27 ringgit or 0.57% to 4,724 Ringgit ($1,156.43).
A Kuala Lumpur based trader stated that the future will likely be traded between 4,650 and 4,750 ringgit, while tracking Dalian's performance.
Dalian's palm oil contract, which is the most active contract, gained?0.4%. Chicago Board of Trade soyoil prices rose 0.06%.
As rival edible oils compete to gain a share of global vegetable oil market, palm oil monitors price movements.
A trade group said that India's palm oil imports rose by 50% in July compared to the previous month, reaching 730,965 tons.
The Supreme Court of Brazil ruled on Wednesday that the soy-moratorium agreement was legal. It prohibited companies from purchasing soybeans in areas deforested since 2008. This exempted grain traders and processors, who had sought compensation from farmers, from having to pay.
A circular posted on the Malaysian Palm?Oil Board?website on Wednesday showed that Malaysia had lowered its crude palm oil price reference for September to a level which maintains?the 10% export duty.
Oil prices fell on Thursday, as investors weighed the prospects of a weaker global economy this year and higher U.S. crude stockpiles. Prices were also supported by a lack of progress made in talks regarding the blocked Strait of Hormuz.
Palm oil is less attractive as a biodiesel feedstock due to lower crude?oil prices.
The palm ringgit's trade currency, the dollar, has weakened by 0.05%, making it slightly cheaper for foreign buyers. $1 = 4.0850 Ringgit (Reporting and editing by Sonia Cheema, Vijay Kishore).
(source: Reuters)
