Band Mei Mei Chu
KUALA LUMPUR, July 15 (Reuters) – Malaysian palm oil futures rose Thursday to their highest level in nearly six weeks, supported by better exports so far in July and as dry weather and a labor shortage work are slowing the global production of vegetable oils.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange climbed 68 ringgits, or 1.69%, to 4,089 ringgits ($ 974.73) per tonne at the midday break, heading for a third consecutive session of gains .
“The culmination of a higher palm and bean oil trade in Dalian, a weaker ringgit, feelings of support and booming exports are pushing up prices today,” Sathia Varqa said, co-founder of Palm Oil Analytics, based in Singapore.
Malaysia’s exports from July 1 to July 15 were up about 5 percent from the same period in June, freight experts said.
Dry weather in the American Midwestern crop belt threatening production has supported Chicago soybean futures prices, while palm oil production in Malaysia is also expected to remain limited due to a labor shortage. ‘artwork.
Soybean Oil Price on the Chicago Board of Trade BOcv1 increased by 0.7%. Dalian’s most active soybean oil contract DBYcv1 gains 1.8%, while its palm oil contract DCPcv1 jumped 2.5%.
Palm oil is affected by fluctuations in the prices of related oils, as they compete for a share of the global vegetable oil market.
Palm oil could test resistance at 4,105 ringgits per tonne, a break above which could lead to a gain of 4,260 ringgits, Reuters technical analyst Wang Tao said. TECH / C
($ 1 = 4.1950 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
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