08/01/2024 (Nasdaq), Jakarta - Malaysian palm oil futures rose on Monday for a third straight session, supported by gains in rival Dalian and Chicago soyoil and as bargain buyers entered the market.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange climbed 10 ringgit, or 0.27%, to 3,692 ringgit ($793.98) a metric ton by the midday break.

"Emergence of bargain buyers, coupled with fast recovery in rival oilseeds have lifted prices to positive note," a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 rose 0.51% and its palm oil contract DCPcv1 increased 0.74%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Oil prices fell by more than 1% on Monday after sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tensions in the Middle East.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The Malaysian ringgit MYR=, palm's currency of trade, rose 0.09% against the U.S dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

Palm oil may fall to 3,709 ringgit per ton, following its failure to break resistance at 3,793 ringgit, said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.6500 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-edges-up-on-support-from-rival-oils-bargain-buyers