JAKARTA: Malaysian palm oil futures rose significantly on Monday, with the highest closing price of more than four months, over the news of Ukraine port attacked by Russia.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 133 ringgit, or 3.30%, to 4,168 ringgit ($912.04) a metric ton on its closing price.
“There is news on Ukraine port attacked by Russia. Russia also looking to block Ukraine from exporting their grains, making soybean oil jumped over 2% and corn 3%,” a Kuala Lumpur-based trader said.
In a recent development, Russia destroyed Ukrainian grain warehouses on the Danube in a drone attack on Monday, expanding the target area of its air campaign and raising possible threats to Ukraine’s huge overland and river grain exports via the European Union.
Soyoil prices on the Chicago Board of Trade were up 2.55%. Dalian’s most-active soyoil contract fell 2.24%, while its palm oil contract lost 2.71%.
Indonesia’s palm oil exports, including refined products, stood at 2.23 million tonnes in May, data from the Indonesian Palm Oil Association showed.
Malaysia’s palm oil exports during July 1-20 rose 10.1% from the month before, according to AmSpec Agri Malaysia and 19%, according to cargo surveyor Intertek Testing Services.
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 extend its gains into a resistance zone of 4,103-4,122 ringgit per metric ton, and reverse its uptrend thereafter, Reuters technical analyst Wang Tao said.
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