Palm extends gains after raising of biodiesel mix
21/12/2023 (The Star Online), New Delhi - Malaysian palm oil futures rose yesterday, a day after Brazil decided to raise its mandatory biodiesel mix into diesel.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained RM20 or 0.51%, to RM3,775. It had risen 0.3% on Tuesday.
Brazil’s energy policy council on Tuesday decided to raise the country’s mandatory biodiesel mix into diesel from early next year, bringing forward previously set blending targets.
The move could cut Brazil’s soyoil exports and that would raise the demand for palm oil, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Prices were supported by the announcement that Argentina would seek to hike export taxes for soybean oil and meal.
Palm oil and soyoil compete for a part of the global market share.
Malaysia’s palm oil stocks at the end of November fell for the first time in seven months as production slumped more than exports, data from the industry regulator showed last week.
Indonesia, the world’s biggest palm oil producer, exported three million tonnes of palm oil products in October, down 31% from last year, data from the Indonesian Palm Oil Association showed on Tuesday.
Soyoil futures on the Chicago Board of Trade were down 0.61%.
India’s palm oil imports in November jumped to a near three-month high, up nearly 23% from October as refiners preferred the tropical oil over rival soyoil and sunflower oil due to steep discounts, a leading trade body said.
Palm oil still targets a range of RM3,813 to RM3,835 per tonne, as it has broken a resistance zone of RM3,775 to RM3,781.Oil prices were little changed on Wednesday as investors kept an eye on the situation in the Red Sea after the recent attacks by Iran-aligned Yemeni Houthi militants. — Reuters