Palm oil rises on bargain-hunting

JAKARTA: Malaysian palm oil futures recovered on Monday, paring some losses in the previous session on bargain hunting.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 40 ringgit, or 1.09%, at 3,721 ringgit ($849.93) a metric ton at closing.

The contract lost 1.79% last week, its fourth consecutive weekly drop.

“Palm oil futures is supported by bargain hunting after found support above 3,663 ringgit a ton but firm ringgit may limit upside,” a Kuala Lumpur-based trader said.

Malaysian palm oil futures reverse gains on weaker data

Malaysian ringgit, the contract currency of trade, strengthened 1.09% against the U.S. dollar on Monday, its highest closing since mid-February 2023. A stronger ringgit made the contract less attractive for foreign currency holders.

Dalian’s most-active soyoil contract lost 0.11%, while its palm oil contract gained 0.66%. Soyoil prices on the Chicago Board of Trade was down 0.33%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Indonesia has revised its rules on its palm oil domestic market obligation (DMO) scheme, raising the price cap in a bid to improve supplies of cheap cooking oil, while lowering domestic distribution target to 250,000 tons monthly.