The September palm oil contract on the Malaysian Derivatives Exchange (MDEX) soared in Monday's session (19) to 22.00 points and 2.52%, quoted at US$ 895.50/ton. The October contract advanced 21.50 points and 2.54%, traded at US$ 868.00/t.
Supporting prices, traders adjusted their positions. This was in view of the losses observed in the previous trading session – on Friday (16), the commodity fell 0.23%.
However, capping gains, the Malaysian ringgit appreciated 1.09% against the dollar today, making the commodity more competitive for foreign buyers.
On the Dalian Commodity Exchange (DCE), the soy oil most active fell 0.11%. This, while the palm oil contract recorded a gain of 0.66%.
In Indonesia, the country’s Ministry of Commerce revised its palm oil sector rules under the domestic market obligation (DMO) scheme, raising the price ceiling from Rp14,000 to Rp15,700 and reducing the domestic distribution target from 300,000 to 250,000 tonnes per month.
The change occurred because the scheme was no longer viable, as weak demand from abroad caused a decline in applications for permission.
Source: datagro
