Palm rises to 3-week high, as Dalian rivals gain
JAKARTA: Malaysian palm oil futures rose to their highest in more than three weeks on Monday, tracking gains in edible oils on the Dalian exchange. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.21%, to 4,779 ringgit ($1,171.32) a metric ton by the midday break. The contract gained nearly 4% last week, a second consecutive…
Malaysian palm oil prices soared to three-week highs on Monday, mirroring gains on the Dalian exchange. The Bursa Malaysia Derivatives Exchange's January palm oil contract surged 10 ringgit, or 0.21%, to 4,779 ringgit ($1,171.32) per metric ton. This marked a 4% gain last week, a continuation of two consecutive increases.
A trader in Kuala Lumpur attributed the rise to parallel gains in Dalian RBD palm olein futures. However, the upside potential may be constrained by Malaysia's abundant palm oil inventories, according to the trader.
Soybean oil prices on the Chicago Board of Trade declined 0.13%, contrasting with palm oil's upward trend. Palm oil price movements are influenced by its competition for global vegetable oil market share.
Malaysia's agricultural exports dropped 5.7% in September, primarily due to reduced palm oil and palm oil-based product shipments, according to government data released on Monday. In response, mills in Indonesia's West Kalimantan province cut back on processing fresh fruit bunches as reduced river levels hindered palm oil transportation.
Palm oil prices faltered on Monday as US President Donald Trump lifted sanctions and tariffs on Russia, potentially boosting Russian fuel exports. Diminished crude oil futures cast doubt on palm oil's appeal as a biodiesel feedstock. Technical analyst Wang Tao of Reuters predicted palm oil FCPOc3 could reach a range of 4,799 to 4,820 ringgit per metric ton, having broken the resistance level of 4,766 ringgit.
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