Palm oil closes up after crude prices climb higher
JAKARTA: Malaysian palm oil futures gained on Monday, supported by higher crude oil prices, with rival soy oil prices in the Chicago market also providing support. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 39 ringgit, or 0.81%, at 4,853 ringgit ($1,191.21) a metric ton at closing. “Today’s FCPO is holding firm on the back of strong…
Malaysian palm oil futures rose on Monday, buoyed by higher crude oil prices, with soy oil prices in Chicago also providing support. The November November delivery contract on Bursa Malaysia Derivatives Exchange climbed 39 ringgit, or 0.81%, to 4,853 ringgit ($1,191.21) per metric ton at closing. Traders attributed the rally to robust crude oil prices and expectations of increased demand for bio-diesel.
Crude prices kept climbing, surging over 3% on Monday, following strikes on Saudi Arabian energy facilities and attacks on ships in the Middle East, which deepened supply worries. Higher crude prices make palm oil more appealing for biodiesel feedstock. Meanwhile, Dalian's top-soyoil contract fell 1.08%, while its palm oil contract slipped 1.24%.
Soyoil prices on the Chicago Board of Trade climbed 0.14%. Palm oil mirrors other edible oils, competing for market share. The Malaysian ringgit, the palm oil's trading currency, weakened 0.15% against the dollar, making it more affordable for buyers using foreign currencies. Cargo surveyors estimated Malaysian palm oil exports from September 1 to 10 dropped 11.7% to 17.5% compared to the previous month.
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