Malaysian palm oil futures climbed on Monday to their highest in more than a week, tracking strength in US grains on the Chicago Board of Trade (CBOT) and related edible oils on China's Dalian Commodity Exchange. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.8% at 1,959 ringgit ($476.99) a tonne at the close for a third straight session of gains.
It earlier rose as much as 1.1% to 1,965 ringgit, its highest since July 5. Palm oil could rise to 1,966 ringgit per tonne, as it may have bottomed around a support at 1,929 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals. "Palm prices are tracking the Dalian and US grains markets, as the weather forecasts seem bad in the United States," said one Kuala Lumpur-based trader. "Exports also should improve," he added, referring to Malaysian palm oil shipments in July. Palm oil exports from Malaysia, the world's second-largest producer and exporter, have risen in the first half of this month from a month earlier, according to cargo surveyor data from AmSpec Agri Malaysia and Intertek Testing Services.
Another cargo surveyor, Societe Generale de Surveillance, on Monday evening reported that exports in the first half of July edged up by 0.4%. US soyaoil futures on the CBOT rose 0.4%, in line with gains in US corn, wheat and soyabean futures. US grains rose on Monday as forecasts for hot, dry weather across a key North American growing region stoked fears that crops could face further damage.
In related oils, the September soyaoil contract on the Dalian exchange rose 1%, while the Dalian September palm oil gained 1.3%. Palm oil prices are affected by movements in related oils that compete for a share of the global vegetable oils market.
Comments
Comments are closed for this article.