Palm rises on stronger Chicago soyoil but easing exports cap gains
Malaysian palm oil futures rose on Monday, supported by strength in Chicago soyoil, but gains were limited on strength in the Malaysian ringgit and as exports are seen easing.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 5 ringgit, or 0.13%,to 3,936 ringgit ($841.39) a metric ton at closing.
“Bursa Malaysia CPO (crude palm oil) futures were seen trading higher following higher Chicago soyoil futures on Friday night and in today’s Asian hours,” said Anilkumar Bagani, commodity research head of Mumbai-based Sunvin Group.
However, a slightly negative palm oil export performance and a relatively stronger ringgit were capping the gains in ringgit-denominated palm oil futures, he added.
Soyoil prices on the Chicago Board of Trade BOc2 were up 0.80%. Dalian’s most active soyoil contract DBYcv1 slipped 0.12%, while its palm oil contract DCPcv1 was down 0.27%.
Palm oil prices are affected by soyoil prices as they compete for a share in the global vegetable oil market.
Malaysian ringgit strengthened 0.28% against the U.S. dollar by 1006 GMT.
Exports of Malaysian palm oil products for Nov. 1-Nov. 20 period were seen to be falling around 2% comparedwith the same period a month ago, data from cargosurveyor Intertek Testing Services and independent inspection companyAmSpec Agri Malaysia showed on Monday.
Palm oil FCPOc3 may retest support at 3,917 ringgit per metric ton, a break below which could open the way towards 3,882-3,895 ringgit range, according to Reuters’ technical analyst Wang Tao.
Source: Reuters (Reporting by Bernadette Christina Munthe; Editing by Rashmi Aich, Mrigank Dhaniwala and Louise Heavens)