Malaysian palm oil futures rose on Tuesday after a two-session slide, supported by bargain-hunting and cargo surveyor data showing robust exports last month.
KUALA LUMPUR: Malaysian palm oil futures rose on Tuesday after a two-session slide, supported by bargain-hunting and cargo surveyor data showing robust exports last month.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 64 ringgit, or 1.46 per cent, to RM4,444 ringgit (US$1,056.84) per tonne by the midday break. The contract fell 2.41 per cent in the last two sessions. The market was closed on Monday for a holiday.
Crude palm oil futures traded higher on bargain-buying after last week’s sell-off, with strong exports seen so far also lifting market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Cargo surveyor Intertek Testing Services estimated that Malaysia’s palm oil exports in August rose 10.2 per cent month-on-month. AmSpec Agri Malaysia is expected to release its August export estimates later in the day.
Dalian’s most-active soyoil contract rose 0.14 per cent, while its palm oil contract added 0.99 per cent. Soyoil prices on the Chicago Board of Trade were up 0.08 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 rose as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.19 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Indonesia exported 13.64 million tonnes of crude and refined palm oil from January to July, up 10.95 per cent year-on-year.
Palm oil may bounce to RM4,509 ringgit per ton, as a wave C from RM4,568 ringgit may have completed, Reuters technical analyst Wang Tao said.
Source: New Straits Times
