Palm hits 7-month closing high on Indonesia’s biodiesel plans, strong Dalian oils

Malaysian palm oil futures notched a seven-month closing high on Thursday, driven by strength in rival Dalian oils and Indonesia’s biodiesel plans, while profit-taking is expected ahead of the Malaysia Palm Oil Board’s (MPOB) monthly data release. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange ended up 49 ringgit, or 1.08 per cent, at 4,594 ringgit (US$1,090.18) a metric ton – the highest close since March 7. The contract logged gains for a third consecutive session. The palm oil market rallied to price in bullish developments, including Indonesia’s B50 biodiesel blend mandate and higher opening prices at China’s Dalian exchange, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. However, he said the rally is now vulnerable without fresh catalysts. “Traders are likely to engage in position squaring ahead of the MPOB’s upcoming demand and supply data, while demand too has begun to soften in ...