JAKARTA: Malaysian palm oil futures rose for a second consecutive session on Wednesday, fuelled by the strength in Dalian vegetable oil contracts, while focus was also on the November market poll of planters and analysts for further direction.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 47 ringgit, or 0.93%, to 5,122 ringgit ($1,148.17) a metric ton by midday.
The market is tracking the gains in vegetable oils on the Dalian Commodity Exchange, a Kuala Lumpur-based trader said.
Dalian’s palm oil contract climbed 1.07%, while its most-active soyoil contract rose 0.05%. Soyoil was down 0.57% at the Chicago Board of Trade.
However, price gain was capped by weakness in Chicago soyoil and stronger Malaysian ringgit, the contract’s currency of trade that strengthened 0.13% against the US dollar, the trader added.
A stronger ringgit makes palm oil less attractive for foreign currency holders.
India’s edible oil imports in November jumped to their highest levels in four months as refiners raised purchases of palm oil, soyoil and sunflower oil to replenish inventories after robust demand during festival season, five dealers said.
Malaysian palm oil exports in November are seen falling between 9.3% and 10.4%, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Indonesia raised its crude palm oil (CPO) reference price for December to $1,071.67 a metric ton from $961.97 in November, placing the export tax higher at $178 per ton.
Palm oil is expected to revisit its Nov. 11 high of 5,202 ringgit per metric ton, as it has broken resistance at 5,124 ringgit.