Palm rises over 2% on higher exports, costlier soyoil

SINGAPORE: Malaysian palm oil futures climbed more than 2% on Tuesday, extending gains into a second session on the back of cargo surveyor data showing higher exports, while stronger rival soyoil on the Chicago Board of Trade also lent support.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 73 ringgit, or 2.1%, to 3,597 ringgit ($892.56) a tonne by midday.

"Malaysian palm oil futures are seen trading higher in continuation of the bullish momentum of Monday," Mumbai-based Sunvin Group said in a note to clients.

The benchmark contract for April delivery had advanced more than 4% in the previous session on higher crude oil prices and strong export data.

Exports of Malaysian palm oil products during Feb. 1-15 rose 27.4% to 530,545 tonnes from 416,565 tonnes shipped during Jan. 1-15, cargo surveyor Intertek Testing Services said on Monday.

CBOT soybeans rose for a third straight session on Tuesday while the soyoil contract climbed 2.3% as frigid temperatures in key US growing areas raised worries about global supplies.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Meanwhile, higher taxes imposed by top palm importer India weighed on prices. India has raised the base import price of crude palm oil by $32 to $1,045 per tonne.

Palm oil may test a resistance at 3,752 ringgit per tonne, a break above which could lead to a gain into a range of 3,801-3,834 ringgit, Reuters analyst Wang Tao said.