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Wednesday, October 4, 2023

Palm rebounds on stronger soy oil, weaker ringgit

JAKARTA: Malaysian palm oil futures gave up early gains to trade lower on Thursday, weighed down by losses in rival Dalian oils, although a weaker ringgit provided some support to the market.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.33% to 3,956 ringgit ($898.89) per tonne by the midday break.

Earlier in the day, it rose as much as 2.19%. Palm was dragged down by a “very weak” Dalian market, a trader in Kuala Lumpur said.

Dalian’s palm oil contract fell 2.20%, while the most active soyoil contract dropped 0.22%, reversing an earlier gain of 0.75%.

Soyoil prices on the Chicago Board of Trade climbed 0.61%. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.

Palm oil may revisit Nov. 21 low of 3,787 ringgit

Meanwhile, the ringgit softened against the US dollar for a third day after hitting its strongest level since early May earlier this week.

A weaker ringgit makes palm oil more attractive to holders of foreign currencies.

Palm oil may rise into a range of 4,132-4,196 ringgit a tonne, as it managed to hover above a rising trendline, Reuters technical analyst Wang Tao said.

Palm rebounds on stronger soy oil, weaker ringgit

Source: Brecorder

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