VEGOILS - Palm oil gains over rival soyoil. Key data on production and price forecasts are awaited.
Malaysian palm futures closed higher Monday. The market is awaiting data from the Malaysian Palm Oil Board and the Price Outlook Conference. The benchmark April palm oil contract on the Bursa Derivatives exchange rose 19 ringgit (0.46%) to 4,173 Ringgit ($1,061.29) per metric ton at close. A Kuala Lumpur trader stated that the market would follow the 'Dalian' lead until tomorrow's MPOB data and POC analysts outlook for further leads. Dalian's top-active palm oil contract dropped 0.31%, while the soyoil contract rose 0.07%. Chicago Board of Trade soyoil rose by 1.63%.
Palm 'oil monitors the price movement of rival edible oil, as it competes to gain a share of the global vegetable oil market. The MPOB will release its monthly data between February 9-11, while the POC is set to take place from February 9-11. A survey showed that Malaysia's palm-oil inventories will end their 10-month streak of rising stocks in January. This is because exports increased during a slowdown in production.
Crude oil prices dropped 1% on Monday, as investors eased their concerns about supply disruptions after U.S.-Iran pledged to continue talks over the weekend regarding Tehran's nuclear program.
Palm oil is less appealing as a biodiesel source due to the weaker crude oil futures.
The palm ringgit's trade currency strengthened by 0.33% to the dollar. This made the commodity more costly for buyers who hold foreign currencies.
(source: Reuters)
