VEGOILS-Palm Rebounds On Strong Soyoil, Oct Exports Growth

October 25th, 2017

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Category: Oilseeds

(Reuters) –  Malaysian palm oil futures rebounded on Wednesday, supported by gains in overseas soyoil prices and a rise in October exports.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was up 0.4 percent at 2,787 ringgit ($658.55) a tonne by midday.

Traded volumes stood at 28,005 lots of 25 tonnes each at the midday break.

“The rise in soyoils is supporting palm prices,” said a Kuala Lumpur-based futures trader.

Movements in related oils impact palm prices as they compete for a share in the global vegetable oils market.

The December soybean oil contract on the Chicago Board of Trade (CBOT) rose by 0.3 percent on Wednesday.

The January soybean oil contract on the Dalian Commodity Exchange gained 0.4 percent on Wednesday. However, the January palm olein contract declined by 0.07 percent.

Although the Malaysian Palm Oil Association (MPOA) released higher production figures, the trader said the market was not stirred as it was already factored in.

“The MPOA data release for Oct. 1-20 shows production is up by 10.5 percent, which is expected and therefore, not affecting the market. This sentiment is supported by steady exports,” said the trader.

Cargo surveyor Intertek Testing Services said on Wednesday that exports of Malaysian palm oil products for Oct. 1-25 rose 8.6 percent to 1,177,939 tonnes from 1,085,116 tonnes shipped during Sept. 1-25.

Another trader added that market sentiment may be partly lifted by weather concerns that would negatively affect palm production at the end of this year.

 

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