Latest News

VEGOILS-Palm increases on weaker Malaysian ringgit, need hopes

Malaysian palm oil futures rose on Thursday due to weakness in the Malaysian ringgit and expectations of improved demand as the tropical oil began trading at a discount to competing soft oils.

The benchmark palm oil contract for August shipment on the Bursa Malaysia Derivatives Exchange closed up 24 ringgit, or 0.62%, at 3,892 ringgit ($ 827.73) a metric lot.

The drop in the Malaysian ringgit and an increase U.S. soyoil futures supplied support to the market, said a Mumbai-based trader.

The Malaysian ringgit, palm's currency of trade, weakened 0.26% against the dollar. A weaker ringgit makes palm oil more appealing for foreign currency holders.

U.S. soybean oil futures were up 0.43% on Thursday early morning.

Palm oil exports had actually been falling given that the oil was more pricey for purchasers than soyoil and sunflower oil. Nevertheless, now that it is trading at a discount, exports are most likely to select up, the trader said.

Malaysian palm oil exports for May 1-20 fell in between 8.3%. and 9.6% from the month in the past, according to cargo property surveyors.

Malaysia's palm oil production is getting momentum and there. is a need to speed up exports to avoid an additional accumulation in. stocks, said a Kuala Lumpur-based trader.

Malaysia's palm oil stocks increased at the end of April for. the very first time in 6 months as production jumped in spite of a drop. in exports, the market regulator said earlier this month.

Palm oil might fall into a range of 3,812-3,832 ringgit per. metric load, as the very first bounce from 3,767 ringgit has. completed, according to ' technical expert Wang Tao.

(source: Reuters)