Key Takeaways
- Malaysian palm oil futures gained on Monday, supported by higher crude oil prices.
- Rival soy oil prices in the Chicago market also provided support.
- Palm oil may test support at 4,788 ringgit per metric ton, according to a technical analyst.
Malaysian palm oil futures saw an increase on Monday, supported by the rise in crude oil prices, according to reports from the Business Recorder. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose by 39 ringgit, or 0.81%, to close at 4,853 ringgit ($1,191.21) a metric ton.
A Kuala Lumpur-based trader stated, 'Today’s FCPO is holding firm on the back of strong crude oil with anticipation of better demand for bio-diesel usage in the future.'
Crude prices surged more than 3% on Monday, driven by new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East, which compounded supply concerns.
While Dalian’s most-active soyoil contract dropped 1.08%, its palm oil contract fell 1.24%. Soyoil prices on the Chicago Board of Trade were up 0.14%.
The ringgit, the currency of trade for palm oil, weakened 0.15% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Cargo surveyors estimated that exports of Malaysian palm oil products for September 1 to 10 fell between 11.7% and 17.5% from the previous month.
Technical analyst Wang Tao of Reuters suggested that palm oil may test support at 4,788 ringgit per metric ton, driven by a wave of market conditions.
Palm oil tracks rival edible oils as it competes for a share of the global vegetable oils market, with its prices influenced by the performance of other commodities and market dynamics.
Today’s FCPO is holding firm on the back of strong crude oil with anticipation of better demand for bio-diesel usage in the future.
A Kuala Lumpur-based trader, Trader
