VEGOILS-Palm rises on firmer rival Dalian palm olein
Malaysian palm oil futures rose for the second session in a row?on?Monday, supported by a stronger Dalian palm?olein.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 38 ringgit or 0.77% at $4,967 ringgit (1,227.33) per metric ton.
A Kuala Lumpur based trader stated that "Strength of Dalian palm oil provided'support to crude palm oils, keeping the market on a 'positive track towards the midday closing,"
Dalian's palm oil contract gained?1.06%, while the most active?soyoil contract grew by 0.22%. Chicago Board of Trade will be closed on a public holiday.
Palm oil follows the price movement of competing edible oils as it competes to gain a share of the global vegetable oils market.
The oil prices continued to rise as titt-for-tat attacks between the U.S.?and Iran against vessels in the?Strait?of Hormuz, and other areas, raised concerns about a long-term supply disruption out of the Middle East.
Palm oil is more attractive as a biodiesel feedstock due to the stronger crude oil futures.
The ringgit (the?palm tree's currency) weakened by 0.15% versus the?dollar. This made the commodity a little cheaper for buyers who hold foreign currencies.
(source: Reuters)
