KUALA LUMPUR: Malaysian palm oil futures rose on Wednesday, underpinned by estimates of higher exports from the world’s second-largest producer and tracking gains in rival Dalian and Chicago contracts.
Palm drops on demand concerns, falls 2.2% this week
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 70 ringgit, or 1.87%, to 3,806 ringgit ($895.95) a metric ton by 0243 GMT.
Fundamentals
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Dalian’s most-active soyoil contract rose 1.3%, while its palm oil contract added 0.46%. Soyoil prices on the Chicago Board of Trade were up 1.13%.
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Palm oil tracks price movements in rival edible oils, as they compete for a share in the global vegetable oils market. * Cargo surveyors estimated exports of Malaysian palm oil products during Sept. 1-15 rose between 9.1% and 10.2%, compared with the same period last month.
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Oil prices steadied, after rising in the previous two sessions, as investors awaited the Fed’s anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.
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Brent crude futures for November lost 0.46% to $73.36 a barrel as of 0227 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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The ringgit, palm’s currency of trade, strengthened 0.19% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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Palm oil may break resistance at 3,784 ringgit per metric ton, and rise towards 3,864 ringgit, Reuters technical analyst Wang Tao said.
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