VEGOILS-Palm rises for third session on stronger rival oils, slow production
27/06/2023 (Nasdaq), Jakarta - Malaysian palm oil futures rose on Tuesday for a third straight session, supported by stronger rival oils, a weaker ringgit and slow production.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 18 ringgit or 0.48%, to 3,737 ringgit ($801.76) per metric ton by the midday break.
The ringgit MYR= weakened 0.19% against the dollar, making palm more attractive for buyers holding foreign currencies.
"Palm oil is up on the back of firm Dalian and CBOT (Chicago Board of Trade) soyoil markets. So far, production (in Malaysia) is slow and low, thus providing some support (to the market)," said a Kuala Lumpur-based trader.
Dalian's most-active soyoil contract DBYcv1 rose 0.92%, while its palm oil contract DCPcv1 gained 1.83%. CBOT soyoil prices BOc2 were up 0.31%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for June 1-25 fell between 4.5% and 8.7% from a month earlier, cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia said.
"Exports will be lower this month, but the focus now is on weather," the trader said, adding that stock build-up would be hit if production was disrupted.
($1 = 4.6610 ringgit)
Source: Reuters