By Reuters
JAKARTA: Malaysian palm oil futures rose on Wednesday, recouping losses from the previous session, as gains in rival Chicago soyoil, along with stronger crude oil prices and a weaker ringgit supported the contract.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained RM31, or 0.74 per cent, to RM4,194 (US$987.29) a metric ton by 0231 GMT.
Soyoil prices on the Chicago Board of Trade were up 0.48 per cent. Dalian's most-active soyoil contract edged 0.05 per cent higher, while its palm oil contract slipped 0.41 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose on expectations of steady demand in the US and China, the world's two largest oil users, amid an improving economic outlook.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.21 per cent against the dollar, making the commodity cheaper for holders of foreign currencies.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for July 1-15 period fell 5.3 per cent compared with June 1-15 period, while according to cargo surveyor Intertek Testing Services, it fell 6.2 per cent.
Palm oil may retest resistance at RM4,231 per metric ton, a break above which could lead to a gain into the RM4,254 to RM4,292 range, Reuters technical analyst Wang Tao said.
Asian stock markets were under pressure on Wednesday while the dollar climbed to its firmest against the yen since early April, after US inflation suggested tariffs are pushing prices up, dampening expectations for Federal Reserve policy easing.
Source : palm-oil-futures-rebound-stronger-chicago-soyoil-crude-soft