JAKARTA: Malaysian palm oil futures climbed on Thursday, supported by a bullish run in rival oils and data that showed exports of palm oil products rose in the first 10 days of the month.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 3.82% to close the afternoon trade at 4,268 ringgit ($960.61) per tonne, the highest since July 29.
“Today, we’re mainly following Dalian palm oils movement,” a trader in Kuala Lumpur said, adding that exports data for Aug. 1-10 were also supportive for the contract.
“The latest export shows strength may be due to decreasing stockpiles in both China and India,” the trader added.
Dalian’s palm oil contract rose 1.94%, while its most-active soy oil contract was traded 0.32% higher. Soyoil prices on the Chicago Board of Trade were up 0.39%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm hits 11-day closing high as Indonesia lowers export tax threshold
Exports of Malaysian palm oil products for August 1-10 rose around 10% monthly, cargo surveyor Intertek Testing Service and independent inspection company AmSpec Agri Malaysia said on Wednesday.
Cargo surveyor Societe Generale de Surveillance, however reported on Thursday that Malaysia’s palm oil products exports dropped 16% in Aug. 1-10 exports.
Rival Indonesia exported 2.33 million tonnes of palm oil and its refined products in June, helping ease its stock to 6.68 million tonnes by month end, from 7.23 million in May, the Indonesia Palm Oil Association said on Thursday.
Palm oil may test a resistance at 4,269 ringgit per tonne, a break above which may lead to a gain to 4,452 ringgit, Reuters technical analyst Wang Tao said.