Palm oil gains on strength in rival soyoil, firmer crude oil

By Reuters News

JAKARTA, Oct 22 (Reuters) - Malaysian palm oil futures rose on Thursday, buoyed by gains in rival soyoil on the Dalian and Chicago exchanges, and stronger crude oil prices.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 0.55%, to 4,793 ringgit ($1,174.47) a metric ton at the close.

Brent prices rose to their highest since May on Thursday after more Houthi attacks in Saudi Arabia stoked concerns over a broader escalation of conflict and further disruptions to crude oil supplies from the world's key exporting region.O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract rose 0.59%, while its palm oil contract dropped 0.6%. Soyoil prices on the Chicago Board of Trade were up 0.53%.

Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.

Cargo surveyors estimated that Malaysian palm oil products exports for October 1-20 rose between 58.5% and 78.4% from a month earlier.

Crude palm oil prices are expected to stay above 4,600 ringgit ($1,128) per metric ton in November on stronger export demand, sustained biodiesel consumption and a seasonal decline in production, the Malaysian Palm Oil Council said on Thursday.

The ringgit , palm's currency of trade, weakened 0.06% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

($1 = 4.0810 ringgit)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.