Business Recorder (20/08/2020) KUALA LUMPUR: Malaysian palm oil futures closed at their highest in more than a week on Wednesday, up for a third consecutive session tracking stronger rival edible oils, while investors traded cautiously ahead of the Aug. 1-20 export data.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange settled up 26 ringgit, or 0.96%, to 2,737 ringgit ($656.35) a tonne, its highest closing since Aug. 10.
"Physical prices are gaining strength again, but weaker exports and a stronger ringgit may cap gains," said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Malaysia's palm oil exports during Aug. 1-15 fell 20.2% from the previous month, said cargo surveyor Societe Generale de Surveillance.
Cargo surveyors are expected to release Malaysia Aug. 1-20 export data on Thursday.
The ringgit, palm's currency of trade, gained 0.24% against the dollar, making the edible oil more expensive for holders of foreign currency.
Traded volume is thin, likely because the Malaysian bourse will be closed for a public holiday on Thursday, Varqa said. Trading will resume on Friday.
Meanwhile, Indonesia may further increase palm oil export levies in future to support its biodiesel programme as the price of crude is expected to remain weak next year.
Dalian's most-active soyaoil contract gained 0.9%, while its palm oil contract rose 1.51%. Soyaoil prices on the Chicago Board of Trade were up 0.72%.
Talk of top buyer China planning to start a 2 million tonnes of soyabean oil restocking program and continued flow of shipment of beans from the United States to China are supporting Dalian soya and palm oil prices, Varqa added. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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