On Friday, Malaysian palm oil futures posted their second consecutive weekly rise and hit their highest close in more than six weeks, helped by stronger competing edible oils on the Dalian bourse and a lower ringgit.
On Friday, the benchmark palm oil contract for May delivery rose for the second straight day, rising 1.65% to RM4,136 ($933.63) a tonne. In early trading, the contract reached RM 4,170 per tonne, its highest level since January 4, and rose 5.22% over the week.
Anilkumar Bagani, head of research at Mumbai-based vegetable oils broker Sunvin Group, stated that “crude palm oil futures gapped higher for the third straight day after bullish Chicago soybean oil futures during the overnight and Dalian RBD ZCE palm oil, soybean oil and rapeseed oil futures. in Asian hours today.”
“Sellers are adamant about cutting prices due to increased export taxes and levies on Indonesian palm oil… coupled with reduced palm oil export availability until Ramadan,” continuous.
According to a trade group, purchases of soybean and sunflower oils by refiners increased this week due to a narrowing of the price differential with competing oils, causing a 25% drop from December to its highest level. down in six months.
More about the palm oil exchange and Dalian
Early trading saw an increase of 82 ringgit, or 2.02%, to 4,151 ringgit ($938.08) a tonne for the benchmark palm oil contract for May delivery.
Dalian’s most active palm oil contract (DCPv1) rose 3.41%, while its most active soybean oil contract (DBYv1) gained 2.29%. On the Chicago Board of Trade (BOc2), soybean oil prices fell 0.14%. As they compete for a share of the world market for vegetable oil, changes in the prices of related oils affect the palm.
The contract currency for trade, the Malaysian ringgit, fell 0.63% in early trading. Palm oil is more attractive to foreign currency holders when the ringgit is weaker.
The next level of resistance for palm oil is at 4,196 ringgit; a break above this level could result in a profit of RM 4,311. According to Reuters technical expert Wang Tao, the current rally is tentatively classified as part of a broad flat pattern that evolves from the 3,721 ringgit low set on December 12, 2022.
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