#PALMOIL
Malaysian palm oil futures notched up a second day of gains, tracking rival soyoil, while a weaker ringgit also helped to prop up prices.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.4% to close at RM2,318 (US$569) per tonne on Wednesday.
Traded volumes stood at 44,591 lots of 25 tonnes each at the end of trade, close to the 2015 average of 44,600.
Palm is down 1.9% so far this month, touching a one week low of RM2,253 on Tuesday, weighed down by weakness in Chinese vegetable oils.
"Palm is tracking the external market, both Chicago Board of Trade soy and Dalian," said a trader from Kuala Lumpur, referring to palm and soyoil on China's Dalian Commodity Exchange.
"Any interest from the Chinese side will translate to an upcoming rise in demand ... Both soy and our market will be pulled up by that."
The palm oil market has also been influenced by the performance of Chicago soybean futures, which rose on bargain-hunting after hitting a three-month low on Tuesday.
Malaysian palm oil exports rose about 15% during the July 1-25 period versus a month earlier, led by gains in demand from China and Europe, according to cargo surveyor data released on Monday.
A weaker ringgit also lent support to palm's performance on Wednesday, said traders, as it makes the vegetable oil cheaper for foreign currency holders. The ringgit, palm oil's traded currency, weakened 0.4% against the dollar to reach 4.0735 on Wednesday evening.
Palm oil is expected to rise to RM2,374 per tonne as it has broken a resistance at RM2,302, according to technical analysis by Reuters market analyst Wang Tao.
In related vegetable oils, the Chicago soybean oil contract for December rose 0.1%, while Dalian's January soybean oil contract gained 0.3%. The January palm olein contract was up by 1.5%.
No comments:
Post a Comment