Palm snaps two-day slide to close over 2% higher
KUALA LUMPUR, Malaysian palm oil futures surged over 2% after consecutive declines, buoyed by gains in Dalian and Chicago oils. Anilkumar Bagani of Sunvin Group noted a bullish trend. Export optimism and easing production pace drove the market. Dalian’s soyoil and palm oil contracts rose, as did soyoil prices on the Chicago Board of Trade. Malaysian exports increased, with Indonesia also reporting growth. Global oil prices stabilized amid OPEC+ expectations and US fuel demand hopes.
KUALA LUMPUR, May 28 (Reuters) -Malaysian palm oil futures rose onTuesday to close over 2% higher after two straight sessions of falls, as gains in rival Dalian and Chicago oils and an improving export outlook underpinned the market.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange closed up 93 ringgit, or 2.40%, at 3,963 ringgit ($844.63) per metric ton.
Malaysian palm oil futures were seen trading sharply higher, following a bullish momentum in Dalian contracts and Chicago Board of Trade soyoil futures, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
“The market has shrugged off the losses from Monday, as exports are seen better than expected, while the production pace has started to ease,” Bagani said.
Dalian’s most-active soyoil contract DBYcv1 gained 1.66%, while its palm oil contract DCPcv1 added 1.99%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.18%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysian palm oil exports for May 1-25 rose between 2.4% and 3.1% from the month before, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Cargo surveyor Societe Generale de Surveillance estimated the exports at 949,451 tons, compared with 931,938 tons a month earlier, according to LSEG.
Indonesia exported 2.56 million tons of palm oil products in March, up from 2.17 million tons in February, its palm oil association said.
Global oil prices steadied on Tuesday as the prospect of OPEC+ maintaining oil supply curbs at its June 2 meeting and hopes of strong U.S. summer fuel demand balanced concern about higher-for-longer U.S. interest rates. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit MYR=, palm’s currency of trade, strengthened 0.06%against the dollar, making the commodity more expensive for buyers holding the foreign currency.
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