VEGOILS - Palm extends its gains on stronger Chicago Soyoil

The market for Malaysian palm oils futures continued to rise, despite weather concerns and weak November export figures.

The benchmark contract for palm oil delivery in January on the Bursa Derivatives exchange gained 27 ringgit or 0.66% to 4,139 Ringgit ($979.88).

According to Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari, the uptrend in Chicago Soyoil Prices is helping sustain the palm Market. However, traders are also squareing off their positions before a weather alert,

Supramaniam noted that the weaker November preliminary export numbers and the firmer ringgit were causing headwinds.

Malaysian Meteorological Department has said that the northeast monsoon will arrive on Thursday, and last until March 2026. It will cover the east coasts of Peninsular Malaysia, Sabah, and Sarawak. Flooding could occur near rivers and low lying areas if there is continuous rainfall.

The cargo surveyors estimate that Malaysian palm products exports between November 1-10 dropped between 9.5% to 12.3% from the same period one month earlier.

Dalian's palm oil contract grew by 1.15%, while the most active soyoil contract increased by 0.34%. Chicago Board of Trade soyoil prices were up by 0.71%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.

The palm ringgit MYR= strengthened by 0.51% in relation to the dollar. This made the commodity more costly for holders of foreign currencies.

Oil prices remained stable as concerns about oversupply and the impact of U.S. sanctions against Russian oil were balanced by uncertainty.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

(source: Reuters)