Lang
Malaysian palm oil futures opened higher for a fourth consecutive session on Wednesday, supported by rising prices for competing oils on China's Dalian exchange and stronger crude oil prices, although a decline in Chicago soybean oil prices capped the gains.
The benchmark palm oil contract for August delivery on Bursa Malaysia Derivatives rose 12 ringgit, or 0.31%, to 3,880 ringgit ($913.80) per tonne in early trading.
The most active soybean oil contract on the Dalian exchange rose 0.23%, while the palm oil contract there added 1.05%. In contrast, soybean oil prices on the Chicago exchange fell 0.14%.
Palm oil prices tend to track movements in competing vegetable oils, as they compete for a share of the global vegetable oils market.
Crude oil prices rose at the start of trading after the United States barred Chevron from exporting crude oil from Venezuela under a new authorisation related to its assets there, raising the prospect of tighter supply.
Stronger crude oil futures make palm oil more attractive as a feedstock for biodiesel production.
Meanwhile, the ringgit, the currency in which palm oil is traded, weakened by 0.26% against the US dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
According to data published by the European Commission, EU soybean imports for the 2024/2025 season, which began in July, totalled around 12.69 million tonnes as of 25 May, up 7% from the same period last year, while palm oil imports stood at 2.57 million tonnes, down 19%.
Reuters technical analyst Wang Tao said palm oil could fall to a range of 3,814 to 3,838 ringgit per tonne, as it faces strong resistance at the 3,878-ringgit level.
More broadly, Asian equities continued to climb, tracking gains on Wall Street, while the dollar held on to its gains on Wednesday amid encouraging US economic indicators and speculation over strong earnings from technology companies.
Source: Reuters