VEGOILS - Palm up on soyoil demand, exports, and EU law delays
The market rose for the second session in a row as the soyoil price, exports, and the extension of the EU's anti-deforestation law by another year all supported the palm oil futures.
At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery gained 40 ringgit or 0.91% to 4,419 Ringgit ($1,049.15).
Crude palm futures rose on the back of higher soyoil and export performances, according to David Ng, a proprietary trading at Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.
Exports of palm oil products from Malaysia rose by a third, according to AmSpec Agri Malaysia's cargo surveyor.
Comparing the same period from a month ago. Intertek Testing Services' estimates will be released later today.
Ng said that the positive sentiment on the market today is likely also due to the delay of the European Union Deforestation Regulator (EUDR) by another year.
On Tuesday, the European Union announced that it would
The country has launched its anti-deforestation legislation for the second time and delayed for an additional year the import ban of palm oil, which is linked to forest destruction.
Dalian's palm oil contract grew by 1.59%, while the most active soyoil contract increased by 1.24%. Chicago Board of Trade soyoil prices rose 0.44%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
The oil prices fell in Asian trade Thursday. They had risen to a seven-week-high in the previous session, but investors pulled their money out of the market due to the uncertainty surrounding the outlook for supply and demand.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's trade currency, the dollar, has weakened by 0.19%, making it slightly cheaper for foreign currency buyers.
The head of a trade body has said that Indonesian palm oil exports will increase to the European Union in 2026. This is due to a bilateral agreement and the EU delaying its anti-deforestation legislation for the second time.
Technical analyst Wang Tao stated that palm oil could extend its gains to 4,457-4492 ringgit a metric tonne.
(source: Reuters)
