Palm oil rises for second day on firmer soyoil, Malaysia production concerns
19/09/2024 (Reuters), Kuala Lumpur - Malaysian palm oil futures extended gains to a second consecutive session onThursday, underpinned by firmer soyoil prices and production concerns in the world's second-biggest producer.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange closed 34 ringgit, or 0.88%, higher at 3,879 ringgit ($921.82) a metric ton.
The contract rose as much as 3.17% to trade at a high of 3,967 ringgit a metric ton earlier in the session before paring back the gains.
The rebound in soyoil prices is supportingMalaysian palm oil futures, with production concerns in Malaysia lending further support, a Mumbai-based dealer said.
Dalian's most-active soyoil contract DBYcv1 rose 1.21%,while its palm oil contract DCPcv1 added 3.6%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.05%.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
The ringgit MYR=, palm's currency of trade, strengthened 0.87%against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies and capping the gains.
Oil prices rose on Thursday after a large interest rate cut from the U.S. Federal Reserve, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand. O/R
Brent crude futures LCOc1 for November were up 1.19% at $74.53 a barrel as of 1000 GMT. Firmer crude oil futures make palm a more attractive option for biodiesel feedstock.
Crude palm oil prices are expected to remain stable this month, as a strengthening ringgit offset tighter supplies and stagnant exports to key destinations, state agency the Malaysian Palm Oil Council (MPOC) said.
The prices would be seen trading in the 3,850-4,050 ringgit a metric ton range in September, MPOC added.
India's edible oil consumption is set to grow at 2%-3% as cooking oils remain affordable despite an import duty hike, a leading importer told Reuters on Wednesday.
($1 = 4.2080 ringgit)