VEGOILS-Palm extends gains on rival oils’ strength, weaker ringgit
23/08/2022 (Hellenic Shipping News) - Malaysia’s benchmark palm oil futures extended gains to a second session on Monday, helped by stronger vegetable oils, a weaker ringgit, and supportive export data.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange had risen 3.05% to 4,218 ringgit ($941.52) a tonne by the midday break.
Palm futures were higher “on the back of strong Dalian palm oil, good export data and a further weakening of the ringgit,” a trader in Kuala Lumpur said.
Dalian’s palm oil contract DCPv1 rose 3.35%, while its soyoil contract DBYv1 gained 1.91%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.41%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, the Malaysian ringgit MYR= weakened for a sixth straight session against the dollar, trading near its lowest level since 2016.
A weaker ringgit makes Malaysian palm oil more attractive for buyers with foreign currency.
Exports of Malaysian palm oil products for Aug. 1-20 rose 9.1% to 728,165 tonnes from the same period in July, cargo surveyor Intertek Testing Services said on Saturday, while independent inspection company AmSpec Agri Malaysia reported a 3.8% drop.
Palm oil may test a resistance at 4,269 ringgit per tonne, as it has managed to hover above a support at 4,085 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Rashmi Aich and Subhranshu Sahu)