Malaysian palm oil price at 8-month high as rival oils strengthen

• Oct 24, 2019

KUALA LUMPUR: Malaysian palm oil futures closed at an eight-month high on Wednesday, buoyed by sharp gains in rival oils, though a slightly stronger ringgit and worries over demand from India capped gains.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed 0.3% higher at 2,323 ringgit ($554.95) per tonne, after rising to their highest in 16 months at during the session.

Strength in soyoil and palm oil on the Dalian Commodity Exchange, coupled with a weaker ringgit, outweighed worries around a boycott by Indian buyers, a Kuala Lumpur-based trader told Reuters.

But the ringgit last edged slightly higher towards the end of the session, up 0.02% against the dollar, limiting gains.

Dalian’s January palm oil contract rose 1.7%, while the January soyoil contract climbed 0.7%.

Elsewhere, U.S. soyoil futures on the Chicago Board of Trade were down 0.3%.

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

Palm slipped to as low as 2,263 ringgit in the previous session after India’s top vegetable body asked its members to stop buying the edible oil from Malaysia over Prime Minister Mahathir Mohamad’s comments on Kashmir.

Some Indian traders said refiners had already stopped buying Malaysian palm oil for shipment in November and December, fearing higher import taxes or other measures. – Reuters

Source: https://www.thestar.com.my/business/business-news/2019/10/24/malaysian-palm-oil-price-at-8-month-high-as-rival-oils-strengthen#UZ6k69iw7glyW4Cv.99