JAKARTA: Malaysian palm oil futures extended gains on Monday as the market tracked strength in rival oils at Dalian and Chicago Board of Trade (CBOT), while the market awaited the export data for further cues.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange increased 65 ringgit, or 1.71%, to 3,874 ringgit ($816.61) a metric ton during the midday break.
“Palm oil is tracking Dalian and CBOT while looking forward to the 15-day export data to provide further lead,” a Kuala Lumpur-based trader told Reuters.
Dalian’s most-active soyoil contract rose 1.58%, while its palm oil contract gained 1.61%. Soyoil prices on the Chicago Board of Trade increased 0.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Investors are expecting the U.S. Department of Agriculture’s monthly crop production and World Agricultural Supply and Demand Estimates reports to show ample supplies in the United States and globally.
Palm oil falls to one-week low on caution ahead of data release, weaker rivals
Malaysia’s industrial production in March rose 2.4% from a year earlier, below expectations, government data showed on Friday.
Exports of Malaysian palm oil products for May 1-10 fell 14.2% to 369,920 metric tons from 431,190 metric tons shipped during April 1-10, cargo surveyor Intertek Testing Services said on Friday.
Independent inspection company AmSpec Agri Malaysia said on Friday that exports fell 14.8%, while Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports at 263,369 metric tons, according to LSEG.
Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp fuel demand in the world’s biggest economy.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may bounce into a range of 3,857-3,878 ringgit per metric ton, as it has stabilised around a support at 3,760 ringgit, according to Reuters’ technical analyst Wang Tao.
Source: Brecorder
