KUALA LUMPUR: Malaysian palm oil futures rose on Monday after declining for three straight sessions to hit a six-week low, as markets tracked rival Chicago soyoil’s gains at the end of last week.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 125 ringgit, or 2.25%, to 5,691 ringgit ($1,349.54) a tonne in early trade.
Fundamentals
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Exports of Malaysian palm oil products for March rose 7.2% to 1,331,400 tonnes from February, cargo surveyor Societe Generale de Surveillance said on Friday.
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Soyoil prices on the Chicago Board of Trade gained 0.1% after rising 1.8% in the previous session.
Palm oil may test support at 5,606 ringgit
The Dalian exchange was closed for a public holiday.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil prices extended losses as investors eyed the release of supplies from strategic reserves from consuming nations, while a truce in Yemen could ease supply disruption concerns in the Middle East.
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Weaker crude futures make palm a less attractive option for biodiesel feedstock.
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Palm oil may break a support at 5,512 ringgit per tonne, and fall into 5,246-5,384 ringgit range, Reuters technical analyst Wang Tao said.
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