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Malaysian palm oil price gains on strong export demand, higher soyoil prices
KUALA LUMPUR: Malaysian palm oil futures rose on Tuesday evening in their second consecutive day of gains, helped by strong export data and firmer soyoil prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 1.6 percent at 2,548 ringgit ($589.00) a tonne by the end of the trading day.
Volumes stood at 35,723 lots of 25 tonnes each at the close.
Palm had fallen for three consecutive weeks on expectations of rising output and weaker-than-expected export demand.
“The market was expecting exports to be unchanged (from the previous month) or even lower,” said a Kuala Lumpur-based futures trader.
Palm oil export demand declined in early April, cargo surveyor data showed, despite the upcoming Muslim fasting month of Ramadan at end-May. The month sees a higher usage of palm oil for cooking purposes.
Shipments of the tropical oil however improved for the full month of April, rising 4.6 percent from March, according to Intertek Testing Services on Tuesday.
Societe Generale de Surveillance reported a 4.3 percent gain in shipments for the same time period.
Stronger performing soyoil also lent support to palm prices, the trader added.
Palm oil prices track other related edible oils, as they compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade climbed as much as 0.5 percent, while the September soybean oil contract on the Dalian Commodity Exchange was up 1.2 percent.
In related vegetable oils, the September contract for palm olein gained 1.8 percent.
Palm oil may test a support at 2,477 ringgit per tonne, a break below which could cause a loss to 2,450 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.- Reuters
Source: http://www.thestar.com.my/business/business-news/2017/05/03/palm-gains-on-strong-export-demand-higher-soyoil-prices/#JTfIv40gfGf5jUMO.99