Malaysian crude palm oil futures extended gains on Thursday as investor sentiment brightened on hopes Greece would secure a debt swap deal to avoid a messy default, while promising US jobs data also supported prices. An upbeat price outlook for the edible oil, which has risen more than 4 percent so far this year, also underpinned market sentiment.
Palm oil prices are expected to hit 4,000 ringgit by the end of June, leading analyst Dorab Mistry said at a key palm oil conference on Wednesday. Prices have been trading in a range of 3,000-3,300 ringgit this year. "The bullish price forecast helps to lift futures, right now I don't think there are other major factors," said James Ratnam, an analyst with TA Securities in Malaysia.
Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 1.1 percent to close at 3,303 ringgit ($1,098) per tonne. Traded volumes were thin at 19,528 lots of 25 tonnes each, compared to the usual 25,000 lots. According to technical charts, palm oil is expected to rebound more to 3,306 ringgit per tonne, said Reuters market analyst Wang Tao.
Market players are now shifting their focus to the Malaysian export numbers to gauge the impact of Indonesia's move to slash the export tax on refined palm oil shipments. In other vegetable oil markets, the US soyoil contract for March delivery was flat in Asian trade and the most active September 2012 soyoil contract on China's Dalian Commodity exchange gained 0.5 percent.
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