Malaysian palm oil: Market rebounded on Thursday after falling to nearly a 20-month low in the previous session on expectations of good export data and a weaker ringgit.
The underlying palm oil contract for December delivery on the Bursa Malaysia derivatives exchange rose 3.63% to RM3,343 ($721.56) a tonne by late afternoon trading.
The contract broke a five-session losing streak, during which it fell by about 17%, according to oilworld.ru, citing Reuters.
“Today is a correction day on the back of a slightly supportive external market, a weak ringgit and potentially better export data tomorrow,” said a palm oil trader from Kuala Lumpur. A weaker ringgit makes palm oil cheaper for buyers holding US currency.
According to cargo inspectors, from September 1 to September 25, exports increased by 18.6-20.9% compared to the previous month. On Friday, they will release data on Malaysian palm oil exports for the entire month.
The most active Dalian soybean oil contract rose 1.02%, while the palm oil contract shed 0.73%. Prices for soybean oil on the Chicago Mercantile Exchange rose by 0.5%.
Analysts said on Wednesday that Brazilian soybean refiners temporarily halted production as processing margins turned negative, reflecting weak domestic demand for biodiesel and high stocks of vegetable oil.
Palm oil is affected by price fluctuations in related oils as they compete for share in the global vegetable oil market.
The Malaysian ringgit fell to a record low on Thursday as a strong US dollar continued to put pressure on most Asian currencies.
Reuters technical analyst Wang Tao said the price of palm oil is expected to jump in the RM3,360-3,427 range as it found support at RM3,243 per tonne