Palm rises for third session on firm Chicago soyoil, crude and strong exports
Malaysian palm oil prices rose for a third session, supported by stronger crude oil and soyoil markets, along with robust export growth. Higher energy prices boosted biodiesel demand, while a weaker ringgit improved competitiveness, keeping prices firm above key levels despite mixed trends in rival edible oils.
KUALA LUMPUR: Malaysian palm oil futures rose for a third straight session on Monday, lifted by stronger Chicago soyoil and crude oil prices, while robust export figures continued to underpin market sentiment.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 36 ringgit, or 0.78%, at 4,667 ringgit ($1,160.95) a metric ton by the midday break.
Crude palm oil tracked gains in the Chicago soybean oil and crude oil markets during Asian hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“The recent strong export performance also lifted sentiment higher. We see prices supported above 4,600 ringgit and resistance at 4,750 ringgit,” Ng added.
Cargo surveyors estimated that exports of Malaysian palm oil products for March 1-25 rose between 38.4% and 50.6% month-on-month.
Full-month March export estimates are due on Tuesday.
In rival markets, Dalian’s most-active soyoil contract eased 0.42%, while its palm oil contract added 0.64%. Soyoil prices on the Chicago Board of Trade firmed 0.92%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices extended gains, with Brent headed for a record monthly rise, after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the US-Israeli war on Iran in the Middle East.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.17% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Separately, India’s market regulator extended the suspension of derivatives trading in seven key agricultural commodities, including crude palm oil, to March-end next year to rein in prices.
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Source : Business Recorder
