Palm rebounds after ringgit weakens, up over 1%

November 24, 2021: Malaysian palm oil futures rebounded on Wednesday after falling for three straight sessions, as a weaker ringgit made the edible oil more attractive to holders of foreign currency.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 58 ringgit or 1.2% to 5,909 ringgit ($1,405.57) during early trade. The ringgit fell 0.12.

Capping gains, however, were cheaper prices of rival oils.

Dalian's most-active soyoil contract fell 0.8%, while its palm oil contract traded 1.4% lower. Soybean oil prices on the Chicago Board of Trade for January delivery, however, were up 0.7%.

Palm oil may break a support at 4,827 ringgit per tonne, and fall towards a range of 4,706 ringgit to 4,781 ringgit, Reuters technicals analyst Wang Tao said.

FUNDAMENTALS

Indonesia's total palm oil exports are expected to fall for a second year by 0.34% in 2021 from a year earlier, the vice-chairman of the country's palm oil association said.

Global production of the top four vegetable oils - palm, sunflower, soy, and rapeseed oils - is likely to rise the highest in four years, leading analyst Thomas Mielke said.

($1 = 4.2040 ringgit)

Reuters