Palm tracks rival vegetable oils higher
19/06/2024 (Business Recorder), Jakarta - Malaysian palm oil futures rose on Wednesday, tracking rival vegetable oils on the Dalian Commodity Exchange, recouping some of the losses in the previous session.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1.18%, to 3,929 ringgit ($834.54) a metric ton as of midday. It gained 1.06% in overnight trade.
“Palm oil futures are tracking gains in the Dalian market, but a firmer ringgit is capping gains,” said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract was up 1.17%, while its palm oil contract gained 1.47%.
The Chicago Board of Trade was closed for the Juneteenth holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
European Union palm oil imports for 2023/24 stood at 3.22 million tons as of June 16, down from 3.97 million tons imported a year earlier, official data showed.
Exports of Malaysian palm oil products for June 1-15 were estimated to have fallen between 19.8% and 21.6%, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Palm falls on weak export data, overnight fall in Dalian oils
Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for June 1-15 were 488,388 metric tons, up from 426,947 metric tons shipped during May 1-15, according to LSEG.
Palm oil may extend its gains into the 3,965 ringgit-4,011 ringgit range following its failure to break support at 3,889 ringgit, Reuters technical analyst Wang Tao said.