Palm oil rebounds as export data lifts market
Malaysian palm oil futures rose on Monday, ending a two-day decline, supported by stronger Chicago soyoil, Dalian palm olein, and encouraging export data. The December contract gained RM39, or 0.88%, to RM4,464 per ton. Exports for September 1-20 rose 8.7% from the previous month, boosting market sentiment.
KUALA LUMPUR: Malaysian palm oil futures rose on Monday, snapping two straight sessions of declines, as stronger Chicago soyoil and Dalian palm olein lifted the market on encouraging export figures.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained RM39, or 0.88 per cent, to RM4,464 (US$1,060.58) a metric ton at the midday break.
Crude palm oil prices rebounded as Chicago soyoil and Dalian palm olein recovered following positive export data by Intertek Testing Services, a Kuala Lumpur-based trader said.
“Prices were further supported ahead of the industry Globoil conference in Mumbai later this week,” the trader said.
Cargo surveyor Intertek Testing Services estimated that exports of Malaysian palm oil products for September 1-20 rose 8.7 per cent compared with the same period a month earlier. AmSpec Agri Malaysia’s export estimates are expected later in the day.
Dalian’s most-active soyoil contract rose 0.48 per cent, while its palm oil contract gained 0.17 per cent. Soyoil prices on the Chicago Board of Trade were up 0.16 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices inched up supported by geopolitical tension in Europe and the Middle East, although the prospect of more oil supply and concern about the impact of trade tariffs on global fuel demand weighed.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.12 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may retest support at RM4,401 per metric ton, a break below which could open the way towards the RM4,342 to RM4,366 range, Reuters technical analyst Wang Tao said.
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Source : The Business Times
