MUMBAI, 06 Nov (Commoditiescontrol): Malaysian crude palm oil (CPO) futures closed higher on Wednesday, driven by gains in competing vegetable oils and a weakened ringgit. Investors are closely watching for signals from an upcoming industry conference in Indonesia and key data from the Malaysian Palm Oil Board (MPOB) expected next week.
The benchmark January CPO contract on the Bursa Malaysia Derivatives Exchange gained 112 ringgit, or 2.33%, closing at 4,918 ringgit ($1,117.73) per metric ton.
A local trader noted that the market is awaiting fresh direction from the two-day Indonesian Palm Oil Conference starting Thursday in Bali, along with the MPOB data release scheduled for November 11.
In related markets, Dalian’s most-active soyoil contract rose by 0.51%, and its palm oil contract increased by 0.48%. Soyoil prices on the Chicago Board of Trade also saw a slight rise of 0.33%. Palm oil prices typically track trends in rival edible oils due to competition in the global vegetable oil market.
The ringgit weakened by 1.38% against the U.S. dollar, making palm oil more affordable for foreign buyers. Additionally, India's palm oil imports surged by 59% in October to a three-month high, as refiners replenished stocks ahead of strong festive demand.
According to a Reuters survey, Malaysia’s palm oil inventories are expected to decrease in October for the first time in three months, attributed to lower production and increased exports.
Meanwhile, global oil prices dropped by up to 2% following two days of gains, as the dollar strengthened on projections of a Republican victory in the U.S. presidential election and higher-than-expected U.S. crude stockpiles. Falling crude oil futures make palm oil a less attractive option for biodiesel production.
(By Commoditiescontrol Bureau; +91 98201 30172)
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