Palm oil rises on strong crude oil, weaker rivals cap gains
USO•Malaysian palm oil futures rose 1 ringgit, or 0.02%, to 4,673 ringgit per metric ton at midday Monday, supported by stronger crude oil and a weaker ringgit. Losses in rival vegetable oils limited gains.
1. Prices and market drivers
The benchmark December palm oil contract on Bursa Malaysia Derivatives Exchange traded between 4,653 and 4,720 ringgit after falling 4.61% last week. A Kuala Lumpur-based trader said gains in crude oil and a weaker ringgit supported the contract, while weaker prices for Dalian and Chicago oils capped its advance.
2. Rival oils and exports
Dalian soyoil fell 0.79% and palm oil lost 1.53%; Chicago soyoil was down 0.12%. September 1-25 exports of Malaysian palm oil products likely fell 15.1% to 24.3% from a month earlier, cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia said.
3. Outlook and crude oil
Oil prices rebounded more than 1% on Monday after U.S. President Donald Trump rejected an Iranian peace deal aimed at resolving the conflict and reopening the Strait of Hormuz. Reuters technical analyst Wang Tao said palm oil may extend losses into a range of 4,588-4,622 ringgit per ton.
