Palm oil reverses losses on weaker ringgit, technical buying
Malaysian palm oil futures inched higher on Monday, as a weaker ringgit and technical buying supported the market.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 14 ringgit, or 0.31%, to 4,550 ringgit ($1,044.30) a metric ton during the midday break.
The crude palm oil futures market recovered from early losses to close higher at the midday as it was supported by technical buying and a weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit MYR=, palm’s currency of trade, weakened 0.46% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian’s most-active soyoil contract DBYcv1 fell 1.66%, while its palm oil contract DCPcv1 lost 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 2.47%.
Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
Oil prices tumbled more than $3 a barrel after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
You are welcome to get a 7-day free demo access!!!
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon