Palm oil rebounds after six-session losing streak
Malaysian palm oil futures rose on Monday, snapping a six-session losing streak. The December contract on Bursa Malaysia Derivatives gained 43 ringgit, or 0.95%, to 4,578 ringgit/t ($1,120.69/t).
The market was supported by stronger Chicago soyoil. CBOT soyoil futures rose 1.85%, lending support to palm oil, which competes with other vegetable oils in the global market.
Higher crude oil prices provided additional support. Firmer crude makes palm oil more attractive as a biodiesel feedstock, although trading remained volatile amid changing expectations for Middle East supplies.
Market participants are also awaiting fresh Malaysian Palm Oil Board data on production, stocks and demand. The figures could influence the next move in prices following the recent prolonged decline.
A 0.1% weakening of the Malaysian ringgit against the US dollar also provided some export support by making palm oil slightly cheaper for buyers using other currencies. Chinese exchanges remain closed for a public holiday and are due to reopen on October 8.
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