VEGOILS-Palm settles up on strong soyoil, positive export demand
The price of Malaysian palm oils futures rose for the second session in a row on Thursday as the strong soyoil prices and the robust demand from export markets boosted the bullish sentiment.
The benchmark palm-oil contract for December delivery at Bursa Malaysia's Derivatives exchange gained 62 Ringgit or 1.41% to 4,450 Ringgit ($1,058.26).
David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn. Bhd., said that crude palm oil was higher due to overnight strength on the soybean oil markets.
The recent strong export performances also lifted the market sentiment. He said that prices are supported above 4,400 Ringgit and there is resistance at 4,550 Ringgit.
Exports of palm oil products from Malaysia rose between 7.3% to 9.6% in September, according to cargo surveyors.
The Chicago Board of Trade reported a 0.3% increase in soyoil. Dalian Commodity Exchange will be closed for holidays from October 1-8.
As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of competing edible oils.
The oil price declined, continuing a downward trend into its fourth day. This was due to fears about an oversupply on the market.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit, the currency of trade for the company, has remained unchanged in relation to U.S. dollar.
The statistics bureau reported that Indonesia exported 16,20 million tonnes of crude and refined Palm Oil between January and August, an increase of 13.56% compared to the same period in the previous year.
(source: Reuters)
