Malaysian palm oil price jumps more than 2% on higher demand, stronger soyoil
KUALA LUMPUR: Malaysian palm oil futures¬ rose to a more than two-week high on Thursday evening on better¬ demand for the edible oil, moving up for the fourth straight day¬ as they tracked gains in soyoil on the U.S. Chicago Board of¬ Trade.
The benchmark palm oil contract for August delivery¬ on the Bursa Malaysia Derivatives Exchange was last up¬ 2.5% at 2,096 ringgit ($503.48) a tonne.
The market earlier rose to 2,099 ringgit, its strongest¬ level since April 30. Palm is up 5.7% so far for the week, in¬ line to chart its first week of gains in four.
“The market is supported by the continuation of good¬ exports,” said a Kuala Lumpur-based trader, referring to the¬ export data reported by cargo surveyors on Wednesday.
Malaysian palm oil shipments rose between 4% and 15% during¬ May 1-15 from the corresponding period last month, according to¬ data from three cargo surveyors, Amspec Agri Malaysia, Intertek
Testing Services and Societe Generale de Surveillance.
Another trader added that palm prices were supported by¬ continuous gains in competing vegetable oils.
The Chicago July soybean oil contract had gained 0.9%¬ on Wednesday, after U.S. President Donald Trump eased concerns¬ over the U.S.-China tariff war, and was last up 0.6% on¬ Thursday.
Palm oil prices are affected by movements in soyoil, with¬ which it competes for global market share.
Palm oil may rise to 2,091 ringgit per tonne, as it has¬ cleared resistance at 2,034 ringgit, said Reuters market analyst¬ for commodities and energy technicals Wang Tao.
Meanwhile, the May soyoil contract on the Dalian Commodity¬ Exchange was up 0.6%, and the Dalian May palm oil¬ contract jumped 1.3%. – Reuters