Malaysian Palm Oil Prices Rise for Second Day on Rival Oil Strength

Mumbai, April 29 (CommoditiesControl): Malaysian palm oil futures sustained their upward momentum for a second consecutive session on Monday, bolstered by strength observed in competing Dalian and Chicago oils. However, gains were tempered by projections indicating an increase in output

The benchmark Palm Oil contract for July delivery on the Bursa Malaysia Derivatives Exchange concluded the session with a gain of 25 ringgit, or 0.64%, settling at 3,921 ringgit ($822.53) per metric ton. The initial uptick in the contract's value mirrored movements in competitors in the market.

Dalian's predominant soyoil contract observed a rise of 0.95%, while its palm oil counterpart registered a gain of 1.39%. Concurrently, soyoil prices on the Chicago Board of Trade experienced a 0.44% increase.

Palm oil's market dynamics are significantly influenced by price fluctuations in rival oils in order to compete for their market share.

Meanwhile, Crude oil prices underwent a 1% decline on Monday, reversing gains from Friday. This downturn was attributed to eased tensions surrounding Israel Hamas peace talks in Cairo, which alleviated concerns regarding broader conflict escalation in the Middle East. Additionally, the release of U.S. inflation data further diminished prospects for imminent interest rate cuts. Weaker crude oil futures render palm oil a comparatively less appealing option for biodiesel feedstock.

The Malaysian ringgit, the currency utilized in palm oil trade, remained stable against the dollar.

The current Malaysian Palm Oil July contract reflects a 0.64% increase, with prices currently standing at 3,921. Analysis on the hourly timeframe reveals a persistent alignment with the 21-EMA, although encountering resistance around the 3925 marks. A breach below the 3880 thresholds could signal potential downside opportunities, with a target set at 3835. Conversely, a breakthrough and subsequent close above the 3925 level may pave the way for further upward movement, potentially reaching 3960.

Global Futures of Palm oil and Soy oil





(By CommoditiesControl Bureau; +91-9820130172)