VEGOILS - Palm extends gains for highest closing in three weeks
Malaysian palm oils futures ended Wednesday at their highest price in nearly three weeks. This was largely due to stronger related oils, but expectations of increased production could limit the upside.
The benchmark contract for palm oil delivery in July on the Bursa Derivatives Exchange rose 67 ringgit or 1.47% to 4,626 Ringgit ($1,171.14) per metric ton.
The contract extended the 2.45% gains recorded in the previous two sessions.
Market sentiment will likely remain?firm, underpinned?by strength in Dalian RBD?palm olein and Chicago soybean oil futures. Price movements could remain volatile due to uncertainty over the U.S.-Iran Peace Talks, according to a Kuala Lumpur based?trader.
Brent oil prices rose on Wednesday, with Brent trading at?above 100 a barrel. This erased earlier?losses after reports of gunfire attacks against at least three container vessels in the Strait of Hormuz.
Palm oil became more appealing for biodiesel due to higher crude oil prices.
An official from the energy ministry said that Indonesia had consumed 3.9 millions kilolitres palm-based biodiesel in its year-to date biodiesel blend mandate as of April 13th, and was preparing to increase this rate further.
Dalian's palm oil contract grew?1.2%, while the most active soyoil contract jumped 2.07%. Chicago Board of Trade soyoil prices were slightly higher by 0.63%.
As it competes to gain a share in the global vegetable oil market, palm oil monitors the 'price movements' of competing edible oils.
The price of palm oil per metric ton is expected to reach a resistance level at 4,639?ringgit. Technical analyst Wang Tao stated that a break above could lead to gains in the range of 4,693-4760 ringgit.
(source: Reuters)
