JAKARTA: Malaysian palm oil futures inched higher on Tuesday, breaking a streak of five consecutive sessions of losses as soyoil in the Chicago Board of Trade recovered.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 0.18% to 3,885 ringgit ($861.23) per tonne by midday, hitting its weakest level in nearly three weeks. However, lack of fresh data limited gains.
“A recovery in CBOT Soy oil futures in Asian hours on the back of a strong biofuel consumption data in May month has provided some relief to palm oil and a recovery was seen from the early set back,” said Anilkumar Bagani, commodity research head at Mumbai based Sunvin Group.
However, the contract was unable to make significant recovery from a 3.02% drop on Monday as market participants awaits for July data. “Trading was directionless due to lack of fresh positive data and cautious trading ahead of July supply and demand estimate,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics. Dalian’s most-active soyoil contract declined 0.4%, while its palm oil contract dropped 0.32%. Soyoil prices on the Chicago Board of Trade rose 0.55%.
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