Palm oil snaps two sessions of losses on stronger rivals
19/02/2024 (XM), Jakarta -Malaysian palm oil futures climbed on Monday after two consecutive sessions of losses, supported by a recovery in rival vegetable oils and weaker Malaysian ringgit.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 54 ringgit, or 1.42%, to 3,863 ringgit ($807.48) a metric ton at closing. The contract had posted a 1.93% weekly drop on Friday.
"The futures opened gap higher following bullish momentum in Chinese vegetable oil futures and lower production estimates from SPPOMA for Feb. 1-15," said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Dalian Commodity Exchange's soyoil contract DBYcv1 jumped 1.71% while its palm oil contract DCPcv1 rose 1.65%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit, the contract currency of trade, weakened 0.13% against the U.S. dollar. A weaker ringgit make the contract more attractive for foreign currency holders.
Exports of Malaysian palm oil products for Feb. 1-15 were seen falling by 4.31% to 17% from the previous month, cargo surveyors reported.
Malaysia has maintained its March export tax for crude palm oil at 8% and raised its reference price.
($1 = 4.7840 ringgit)
Source: Reuters