SINGAPORE: Malaysian palm oil rose for a third consecutive session to trade 3% higher on Friday, on better-than-expected December data and as higher tariffs on Indonesian crude palm exports made the edible oil from Malaysia more attractive.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 101 ringgit to 3,489 ringgit a tonne. It had dropped to 3,365 ringgit in early trade.
“Palm oil futures trading higher is confirmation that higher Indonesian palm oil export levies and duties gave an export advantage to Malaysia,” Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group told Reuters.
Indonesia set crude palm oil reference price higher for February on Thursday, increasing both export tax and levies.
Meanwhile, Malaysia reported better-than-expected exports in December, expanding 10.8% from a year earlier on higher shipments of manufactured goods and agricultural products, particularly palm oil, government data showed on Friday.
Soyabean oil futures on the Chicago Board of Trade last traded 1.5% higher.
Elsewhere, Dalian Commodity Exchange’s most-active soyaoil and palm oil contracts rose 0.4% and 0.5%, respectively.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.