KUALA LUMPUR: Malaysian palm oil futures opened higher on Monday, snapping a six-session losing streak, tracking strength in Dalian palm olein and firmer crude oil prices.
Indonesia to hike crude palm oil export levy to 1pc
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 39 ringgit, or 0.88%, to 4,472 ringgit a metric ton in early trade.
Fundamentals
Dalian’s most-active soyoil contract rose 0.83%, while its palm oil contract shed 0.59%. Soyoil prices on the Chicago Board of Trade were down 0.28%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Oil prices inched higher, along with other risk assets, after US data showed cooling inflation, reviving hopes of further policy easing next year that will support global economic growth and oil demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.58% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimate exports of Malaysian palm oil products fell between 7.6% and 8.3% during Dec. 1-20, compared with the same period a month ago.
Palm oil may bounce into 4,527 ringgit to 4,624 ringgit per metric ton, as it is stabilising around support at 4,370 ringgit, Reuters technical analyst Wang Tao said.
