Mumbai, 7th May, (Commodities Control): Malaysian palm oil futures extended gains for a second consecutive session, reaching a more than one-week high on Tuesday, tracking persistent increases in soy oil prices due to adverse weather conditions in major producing countries such as Brazil and Russia. Further, concerns over weather disruptions in Indonesia, a significant palm oil producer, bolstered palm prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed up 1.76% at 3,930 ringgit ($829.81) per metric ton, marking the highest close since April 25.
A potential shortage of soybean alongside adverse weather conditions in Brazil and Russia, have joined hands in pushing soy oil prices higher.
Elsewhere, Dalian's most-active soy oil contract rose by 1.51%, while palm oil contract has rallied 2.22%. Similarly, soy oil prices on the Chicago Board of Trade increased by 0.48%.
The Malaysian ringgit, which is the currency of trade for palm oil, strengthened marginally against the dollar by 0.03%.
Malaysian palm oil futures confined within 3920-3930 range. Breakout above 3930 suggests buying with 3965 targets, stop loss at 3915. Conversely, break below 3900 coupled with heavy volume signals creating a short position with an initial target of 3835 and stop loss at 3925. Traders are advised to stay alert for breakout signals.
Global Futures of Palm oil and Soyoil
(By Commoditiescontrol Bureau; +91-9820130172)
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