Palm ends higher on rival oils; market eyes key data

Malaysian palm oil futures closed up on Monday, following rival vegetable oils, while the market awaits Malaysian Palm Oil Board (MPOB) data and export figures.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 23 ringgit, or 0.47%, to 4,891 ringgit ($1,119.22) a metric ton on the closing.

“The futures seem to be following Dalian palm oils support. We will establish our lead once the MPOB and export data are out. For the time being, it should be tracking leads from rival oils,” a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract DBYcv1 rose 1.43%, while its palm oil contract DCPcv1 gained 1.46%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.32%.

Palm oil tracks price movements of rival edible oils as it competes for a share in the global vegetable oils market.

Oil prices rose more than 2% on Monday on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election and a key meeting in China. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm’s currency of trade, strengthened 0.11% against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.

Cargo surveyors estimate exports of Malaysian palm oil products rose between 11.5% and 13.7% in October, compared with a month earlier.

Indonesia raised its crude palm oil reference price for November to $961.97 per metric ton from $893.64 in October, a trade ministry official told Reuters. The new price will put the export tax for November at $124 per ton.

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Tags: Malaysia, palm oil, futures, Market, benchmark contract, soyoil