Malaysian palm oil gains for second day on US soybean oil and crude strength

Published 2023년 2월 24일

Tridge summary

Malaysian palm oil futures closed higher on Thursday, reaching a seven-week peak, driven by increased U.S. soyoil and crude prices. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 2.15% to 4,235 ringgit ($955.77). This rise is due to stronger crude oil futures, making palm oil a more attractive biodiesel feedstock. However, concerns about tight supply from top producer Indonesia and a weaker Malaysian production outlook have supported the market, although there are doubts about the sustainability of high prices as there are no fresh fundamentals to drive the market higher.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures closed higher on Thursday after hitting a seven-week peak, supported by stronger U.S. soyoil and crude prices. The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 89 ringgit, or 2.15%, to 4,235 ringgit ($955.77) by the end of trading on Thursday. The contract hit its highest since Jan. 4 at 4,238 ringgit earlier in the session. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.63%. Dalian’s most active soyoil contract DBYcv1 lost 0.65%, while its palm oil contract DCPcv1 gave up 0.36%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Oil prices edged up on Thursday, after Brent crude posted its biggest single-day loss in seven weeks the day before, as market players reassessed prospects for supply and demand. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Palm futures traded ...

Source: Hellenic Shipping News