JAKARTA: Malaysian palm oil futures bounced back on Tuesday, after two days of losses, as stronger crude and rival edible oils and firm export data boosted prices, although some gains were capped by export resumption from top producer Indonesia.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 1.28% to 6,312 ringgit ($1,442.08) per tonne at the end of trade.
The contract rose as much as 2.29% earlier in the day before paring some of its gains.
Palm was supported by a bullish run in crude prices and a stronger Malaysian palm oil export for May, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Oil prices extended a bull run on Tuesday after the EU agreed to a partial ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of peak US and European summer driving season.
Crude oil affects palm oil prices as the vegetable oil is often used as feedstock for biofuel.
Meanwhile, exports of Malaysian palm oil products in May rose more than 20% from a month earlier, cargo surveyors’ data showed on Tuesday.
Indonesia received its first requests for palm oil export permits following the lifting of a ban a week ago, a senior official said, signalling a calibrated resumption of shipments amid protracted delays.
Dalian’s most-active soyoil contract gained 0.35%, while its palm oil contract rose 2.14%. Soyoil prices on the Chicago Board of Trade were up 1.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a resistance at 6,423 ringgit per tonne, as it has stabilized around a support at 6,220 ringgit, Reuters technical analyst Wang Tao said.
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