SINGAPORE: Malaysian palm oil futures rose for a third straight session on Wednesday, tracking gains in rival oils on the Dalian exchange, while a weaker ringgit also lent support to prices.
Malaysian palm oil up on weather woes at oilseeds plantations
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 24 ringgit, or 0.61%, to 3,954 ringgit ($833.56) a metric ton by 0242 GMT. It fell 0.15% in overnight trade.
Fundamentals
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Dalian’s most-active soyoil contract rose 0.64%, while its palm oil contract was up 1.09%. Soyoil prices on the Chicago Board of Trade fell 0.65% amid profit-taking.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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The Malaysian ringgit, palm’s currency of trade, weakened 0.16% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
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Oil prices fell in early Asian trading hours after market sources said that data from the American Petroleum Institute showed an increase in US crude and fuel stockpiles, an indicator of weak demand.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Palm oil may break resistance at 3,926 ringgit per ton, and rise towards 3,969 ringgit, said Reuters technical analyst Wang Tao.
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