MUMBAI, 04 Nov (Commoditiescontrol): Malaysian crude palm oil (CPO) futures closed higher on Monday, influenced by price movements in competing vegetable oils as traders await crucial data from the Malaysian Palm Oil Board (MPOB) on production and export trends.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose by 23 ringgit, or 0.47%, reaching 4,891 ringgit ($1,119.22) per metric ton at close.
Traders observed that CPO futures are currently aligning with Dalian palm oil trends, which saw gains as market sentiment strengthened. "We expect to establish a firmer trend once the MPOB data and export figures are released. For now, CPO prices are tracking rival oils," remarked a local trader.
In related markets, Dalian’s most-active soyoil and palm oil contracts rose by 1.43% and 1.46%, respectively, while soyoil prices on the Chicago Board of Trade edged up by 0.32%. Since palm oil competes with other edible oils globally, it tends to follow trends in these markets.
Oil prices rose over 2% on Monday after OPEC+ announced a one-month delay in its planned output increase, adding support to CPO as a viable biodiesel feedstock. The rise in crude oil prices enhances palm oil’s attractiveness in biodiesel production, particularly in Southeast Asia.
The ringgit, the currency used for palm oil trade, strengthened by 0.11% against the U.S. dollar, making Malaysian CPO slightly more expensive for buyers dealing in other currencies.
Meanwhile, early estimates from cargo surveyors suggest that Malaysian palm oil exports rose between 11.5% and 13.7% in October compared to the previous month, signaling strong demand. Neighboring Indonesia also increased its crude palm oil reference price for November to $961.97 per metric ton, up from $893.64 in October, setting the export tax at $124 per ton, according to the trade ministry.
With upcoming data releases, the palm oil market is poised for further adjustments as traders closely monitor both domestic trends and international developments in related commodity markets.
(By Commoditiescontrol Bureau; +91 98201 30172)
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