Palm ends higher on crude oil and rival edible oils

JAKARTA: Malaysian palm oil futures closed higher on Monday, tracking strength in crude oil prices, while gains in rival edible oil pricesat the Dalian and Chicago markets provided additional support. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 47 ringgit, or 1. 06%, to 4, 497 ringgit ($1, 138. 19) a metric ton at the close. “The futures are trading slightly higher, mainly supported by stronger crude oil prices, as renewed tensions in the Middle East have once again reduced shipping activity in and out of the Gulf, helping prices recover some of last Friday’s sharp losses, ” said Kang Wei Cheang, Singapore-based analyst from StoneX. At the same time, Dalian markets have rebounded from Friday’s losses, providing additional support to sentiment, while the Chicago soyoil complex is mixed, with soyoil recovering on oil/meal spreading and firmer crude oil prices, he added. Oil prices jumped more than 6% in early Monday trading on fears that the ceasefire between the United States and Iran could collapse after the U. S. seized an Iranian cargo ship and traffic through the Strait of Hormuz remained largely halted. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Dalian’s most-active soyoil contract edged up 0. 17%, while its palm oil contract added 0. 39%. Soyoil prices on the Chicago Board of Trade were up 1. 24%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for April 1 – 20 fell 25. 6% compared to March 1 – 20, while according to cargo surveyor Intertek Testing Services, they fell 25. 8%. The ringgit, palm’s currency of trade, weakened 0. 03% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

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