SINGAPORE: Malaysian palm oil futures recovered on Wednesday, underpinned by firmer rival Dalian and Chicago edible oil contracts, although lacklustre export data and a firmer ringgit curbed gains.
Palm oil rises on bargain-hunting
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit, or 0.57%, to 3,736 ringgit ($854.14) a metric ton as of 0245 GMT.
Fundamentals
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ian’s most-active soyoil contract ticked up 0.33%, while its palm oil contract climbed 0.79%. Soyoil prices on the Chicago Board of Trade gained 0.41%.
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m oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
-ports of Malaysian palm oil products were 866,641 metric tonnes for Aug. 1-20, down 18.4% from July 1-20, cargo surveyor Intertek Testing Services said on Tuesday.
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orts dropped 16.7% to 834,948 tonnes over the same period, according to data from independent inspection company AmSpec Agri Malaysia on Tuesday.
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The Malaysian ringgit, palm’s currency of trade, strengthened 0.08% against the dollar, after touching its highest since February 2023 on Tuesday. A stronger ringgit makes palm oil less attractive for foreign currency holders.
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Oil prices slipped on estimates showing swelling US crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Palm oil may retest a resistance zone of 3,745-3,764 ringgit, a break above which could confirm both a target of 3,809 ringgit and an inverted head-and-shoulders, said Reuters technical analyst Wang Tao.
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