Palm oil extends gains on strong rival oils
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.35%, at 4,330 ringgit ($1,027.77) a metric ton at the close.
'The higher-than-expected production scenario has halted the rally in palm oil prices, while the ringgit continues to strengthen against the US dollar, which is also contributing to the decline in the ringgit-denominated contract,' said Anilkumar Bagani, research head at Sunvin Group.
Adding to the cautious mood, fresh palm oil purchases by India have slowed down due to a sharp surge in prices, Bagani said. Dalian's most-active soyoil contract rose 1.16%, while its palm oil contract added 1.34%. Soyoil prices on the Chicago Board of Trade were up 0.59%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, strengthened 0.28% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Oil prices rose more than 1%, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.
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