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Friday, March 24, 2023

Palm edges higher tracking rivals; cheaper crude weighs

SINGAPORE: Malaysian palm oil futures reversed earlier losses to post gains for a second straight session on Wednesday as rival oils rose, although cheaper crude prices capped gains.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed up 4 ringgit, or 0.1%, to 4,451 ringgit ($1,063.05) a tonne, after touching a session low of 4,379 ringgit earlier.

Prices were supported by costlier rivals on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange, which made palm a more attractive option for vegetable oil buyers.

The palm oil contract on the Dalian rose 0.7% while its soybean oil contract rose 1.1%. CBOT soybean oil also rose by 0.4%.

Palm reverses course to end lower on higher output, cheaper rivals

However, cheap crude prices capped gains as they make palm a less economical option as a feedstock for biofuels.

Oil prices fell on Wednesday after US crude inventories unexpectedly rose and amid concerns about a slowing Chinese economy.

Palm edges higher tracking rivals; cheaper crude weighs

Source: Brecorder

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