Palm oil futures pull back to follow US soybean oil
Malaysian palm oil futures regained earlier losses and ended afternoon trade higher on Wednesday to follow a rebound in US soybean oil and helped by a weaker ringgit.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.98% to 3,824 ringgits ($858.17) per tonne at the end of the post session. -midday.
The contract fell 3.14% earlier on Wednesday, but was supported by a rebound in Chicago Board of Trade soybean oil prices, which rose 2.26% at 10:19 GMT, and one ringgit higher. low, said a trader in Kuala Lumpur.
The Malaysian ringgit hit its weakest level since March 2017 on Wednesday, according to Refinitiv data, as most Asian currencies weakened ahead of a key move by the US Federal Reserve that could determine the path to policy tightening. for central banks in the region.
Palm oil is affected by related oil price movements as they compete for share of the global vegetable oil market, while a weaker ringgit makes palm oil more attractive to buyers using foreign currency.
On the Dalian stock exchange, its most active soybean oil contract rose 0.11%, while its palm oil contract fell 1.99%.
Meanwhile, palm oil prices will continue to weaken in the near term due to signs of demand destruction and “distress selling” by Indonesia’s top producer, the oil consultancy predicted on Tuesday. raw materials LMC International.
Palm oil remains neutral in a range of 3,598 ringgit to 3,857 ringgit per tonne, and a leak could suggest direction, Reuters technical analyst Wang Tao said.
Source: Reuters (Reporting by Mei Mei Chu in Kuala Lumpur and Fransiska Nangoy in Jakarta; Editing by Sherry Jacob-Phillips, Shounak Dasgupta and Shailesh Kuber)