VEGOILS - Palm oil firms brace the market for MPOB stocks, output data
Malaysian palm oil futures continued to rise on Monday as they tracked the strength of rival oils traded on Dalian and Chicago exchanges. Traders are now awaiting the monthly supply-and-demand report from Malaysian Palm Oil Board for more information on stocks and production trends.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for October delivery had gained 42 ringgit (0.9%), or $1154.64 per metric ton. A Kuala Lumpur trader stated that "Today's futures will track the external performance while we wait for the MPOB data to be released, as well as for the first 10 day of export data later" Malaysian palm oil stocks for July rose by 3.32% compared to the previous month, according to data released on Monday during the midday break.
Today, cargo surveyors will also publish their estimates of palm oil exports for the period August 1-10.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.81%. Prices of soyoil on the Chicago Board of Trade rose by 0.77%.
Palm oil follows the price changes of other edible oils as they compete to gain a share in the global vegetable oils markets. Oil prices increased 'on Monday' as uncertainty remained over the reopening of Strait of Hormuz. Iran said the United States must meet certain conditions, even though Tehran and Oman were nearing an agreement on new shipping routes.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The ringgit (the currency used to trade palms) strengthened by 0.02% versus the dollar. This made the commodity slightly less expensive for buyers who hold foreign currencies.
(source: Reuters)
