KUALA LUMPUR: Malaysian palm oil futures rose for a second consecutive day on Wednesday, buoyed by stronger rivals Dalian palm olein and Chicago soyoil.
Palm slips on poor demand from India
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.76%, to 4,398 ringgit ($978.20) a metric ton in early trade.
Fundamentals
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Dalian’s most-active soyoil contract fell 0.13%, while its palm oil contract added 1.73%. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.56%.
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Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
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Oil prices climbed on the day on tighter supplies from Russia and OPEC members, while data showing an unexpected increase in US jobs openings pointed to expanding economic activity and consequent growth in oil demand.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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The ringgit, palm’s currency of trade, weakened 0.25% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
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European Union soybean imports in the 2024-25 season that began in July reached 6.96 million metric tons by Jan. 5, up 12% from 6.22 million tons a year earlier, while EU palm oil imports fell 18% year-on-year to 1.52 million tons, data published by the European Commission showed.
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Palm oil looks neutral in the 4,313-4,423 ringgit per metric ton range, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
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