VEGOILS-Palm rises on export hopes; weak soyoil, crude oil weigh
Malaysian palm futures gained for the second consecutive session on Wednesday, with expectations of robust exports. However, softer prices in soyoil, crude oil, and other commodities capped the gains.
At the close, the benchmark contract for?palm?oil delivery in October on the Bursa Derivatives exchange gained 8 ringgit or 0.17% to 4,704 Ringgit ($1,149.56). The contract increased 1.45% on Monday.
Crude palm futures rose on the expectation of strong export performances, but a weaker soybean oil and crude price may continue to weigh down on market sentiment. This was said by David Ng, a proprietary trading at Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.
Palm oil follows 'the price movements of competing edible oils as it competes to gain a share in the global vegetable oil?market. Meanwhile, weak crude oil futures makes palm oil a less appealing option for 'biodiesel feedstock.
Five dealers reported that India's edible?imports in July reached their highest level for 10 months as refiners purchased more palm oil and soybean oil to replenish stocks ahead of the local holiday season, amid tight domestic supplies.
Dalian's soyoil contract with the highest volume fell by 0.07% while palm oil contracts increased by 1.16%. Soyoil prices at the Chicago Board of Trade rose by 0.25%.
Oil prices rose as Yemen's Iran aligned Houthi rebels claimed they had attacked a Saudi oil tanker on the Red Sea. This has dashed hopes for a deescalation of hostilities in Iran that could have restored shipping traffic and oil flow in the Middle East.
The palm ringgit's currency, the?trade currency, fell 0.12% to the dollar. This made the commodity a little?cheaper? for buyers with foreign currencies.
Data from the European Commission showed that the soybean imports of the European Union for the 2026/27 crop season, which began on July 1,'reach 0.66 million metric tonnes by August 2, down 50% compared to the same period last year,' while palm oil imports fell 31%, reaching 0.19 million metric tons. $1 = 4.0920 ringgit (Reporting and editing by Ashley Tang, Ronojoy Mazumdar, Joyjeet Das).
(source: Reuters)
