Palm recovers from 4 sessions of losses, tracking soyoil strength

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(Dec 27): Malaysian palm oil futures rose about 1% on Thursday after four straight sessions of sharp falls, supported by gains in US soyoil on the Chicago Board of Trade (CBOT) and global stock markets.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.9% at RM2,113 (US$506.11) a tonne at the midday break. Earlier in the session, it climbed as much as 1.7% to RM2,129.

Trading volumes stood at 7,163 lots of 25 tonnes each at the midday break.

“Palm is borrowing support from the recovery in rival oilseed,” said a Kuala Lumpur-based futures trader, referring to CBOT soyoil.



The rally in global stock markets also contributed to palm’s gains, said another palm oil trader.

Asian shares on Thursday rode a dramatic surge on as markets, hammered by a recent drum roll of deepening political and economic gloom, cheered upbeat US data and the Trump administration’s effort to shore up investor confidence.

soared on Wednesday with the Dow Jones Industrial Average rocketing more than 1,000 points for the first time.

In other related oils, the Chicago soybean oil contract was up 0.4%, while the soybean oil contract on the Dalian Commodity Exchange edged up 0.04%.

Meanwhile, the Dalian January palm oil contract declined 0.4%.

Palm oil prices are impacted by changes in soyoil prices, as they compete for a share in the global vegetable .

Palm, soy and crude oil prices at 0435 GMT:

Contract          Month   Last   Change     Low    High  Volume
MY PALM OIL JAN9 2022 +5.00 2022 2039 52
MY PALM OIL FEB9 2071 +20.00 2062 2084 747
MY PALM OIL MAR9 2113 +19.00 2104 2129 6167
PALM OLEIN JAN9 4048 -16.00 4044 4084 10330
CHINA SOYOIL JAN9 4928 +2.00 4906 4940 15532
CBOT SOY OIL JAN9 27.47 +0.11 27.44 27.51 1073
INDIA PALM OIL DEC8 0.00 +0.00 0.00 0 0
INDIA SOYOIL JAN9 0 +0.00 0 0 0
NYMEX CRUDE FEB9 46.05 -0.17 45.67 46.70 46030

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in yuan per tonne
India soy oil in rupee per 10 kg
Crude in US dollars per barrel



(US$1 = RM4.1750)
(US$1 = 70.2060 Indian rupees)
(US$1 = 6.8910 Chinese yuan)

 

Source:The Star





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