JAKARTA: Malaysian palm oil futures rose on Tuesday, supported by a stronger palm oil contract on the Dalian Commodity Exchange, and the Chicago soyoil.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit or 0.2% to 3,916 ringgit ($847.62) per metric ton at closing.
“Bursa Malaysia crude palm oil futures were seen trading higher today following a recovery in Chicago soyoil futures from the early setback on Monday overnight and in South American crude degummed soybean oil FOB markets,” said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Some bargain buying was seen in the futures, he added.
Palm oil declines, weighed down by weaker Dalian rivals and firm ringgit
Dalian’s palm oil contract was up 0.95%, while soyoil prices on the Chicago Board of Trade were up 0.19%, although the Dalian soyoil contract slipped 0.6%.
Palm oil tracks price movements of rival edible oils as they compete for a share of the global vegetable oils market.
Indonesia raised its crude palm oil reference price for August to $820.11 per metric ton from $800.75 per ton in July, but will keep the export tax and export levy unchanged, a trade ministry official said on Tuesday.
Indonesia’s palm oil exports in May were 1.97 million metric tons, an 11.8% drop from a year earlier, data from the country’s palm oil association GAPKI showed on Monday.
Meanwhile, Indonesia’s Trade Ministry is planning to revise the domestic market obligation rules for palm oil to potentially change the prices for the portion and types of product sold to the local market.
Palm oil may break support at 3,881 ringgit and fall to 3,849 ringgit, Reuters technical analyst Wang Tao said.
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