Malaysian palm oil futures extend gains to sixth straight session
26/09/2024 (Business Recorder), Kuala Lumpur - Malaysian palm oil futures extended gains to a sixth straight session on Wednesday, closing at their highest level in over two-and-a-half months, as strength in Dalian contracts outweighed profit-taking in other rival oils.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange climbed 56 ringgit, or 1.4%, to 4,044 ringgit ($979.89) a metric ton to close at its highest since July 5.
The contract has risen 8.24% over the last six sessions.
Malaysian palm oil futures are still on the uptrend as the Chinese government’s stimulus announcement has resulted in continuous strength in Dalian oils, a Kuala Lumpur-based trader said.
“We are also seeing some profit-taking on rival oils’ long contracts,” the trader said.
Dalian’s most-active soyoil contract rose 0.58%, while its palm oil contract added 1.38%. Soyoil prices on the Chicago Board of Trade fell 0.23%.
Palm oil tracks price movements in rival edible oils as they compete for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, strengthened 0.55% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimate exports of Malaysian palm oil products rose between 13% and 13.9% during Sept. 1-25, compared with the same period a month ago.