Malaysian crude palm oil futures rose on Thursday, extending gains from the previous session as the Malaysian ringgit eased from 23-month highs. Traders are on the lookout for a slew of Malaysian palm oil production, stocks and exports data due over the weekend and on Monday and any developments on the brewing China-Argentine soyoil spat.
By midday, the benchmark June crude palm oil contract on Bursa Malaysia Derivatives Exchange inched up 0.4 percent, or 11 ringgit, to 2,550 ringgit ($794.6). Overall traded volumes was 4,392 lots of 25 tonnes each. "The support level is at 2,500 ringgit. Currently the market is looking for cues on domestic fundamentals," said one trader with a foreign brokerage in Kuala Lumpur.
Reuters will issue a poll on Malaysia's March palm oil stocks, production and exports later in the day. The ringgit traded at 3.210 per dollar in the morning session, easing from a 23-month high hit the previous day. A stronger ringgit usually makes crude palm oil feedstock more expensive for processors and chews into their margins.
Oil declined for a second day to trade below $86 on a stronger dollar and soaring US crude stockpiles, pressuring US soyoil futures in choppy Asian trade. In China, the most active September soyoil delivery at Dalian Commodity Exchange made little headway on Beijing's import restriction on Argentine soyoil as traders waited for more developments.
Comments
Comments are closed.