Palm rises for third day on improving exports, higher soyoil

KUALA LUMPUR: Malaysian palm oil futures extended gains for a third straight session on Thursday, boosted by stronger exports during the first two weeks of April and tracking higher rival soyoil.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 61 ringgit, or 1.64%, to 3,791 ringgit ($918.81) a tonne by the midday break.

Exports of Malaysian palm oil products for April 1-15 rose 13.1% from March 1-15 to 585,510 tonnes, independent inspection company AmSpec Agri Malaysia said.

Palm-based biodiesel demand from the United States is also expected to rise as the country seeks to replace corn-based ethanol due to low corn supplies, said Marcello Cultrera, institutional sales manager & broker at Phillip Futures in Kuala Lumpur.

"Market is now hoping for higher exports from major buyer of palm oil, China and India, to replenish their stocks," a Singapore-based trader said.

The volatility of the soybean market will also weigh on the next price trend for soyoil and palm oil, the trader said.

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

Soyoil prices on the Chicago Board of Trade were up 0.1%. Dalian's most-active soyoil contract gained 0.8%, while its palm oil contract also rose 1.2%.

Palm oil may rise into a range of 3,844-3,926 ringgit per tonne, as it has cleared a resistance at 3,761 ringgit, Reuters technical analyst Wang Tao said.