JAKARTA: Malaysian palm oil futures rose on Monday, tracking other edible oils on China’s Dalian exchange, supported by lingering concerns over tightening global supplies due to the Russia-Ukraine conflict.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 2.23% to 6,461 ringgit ($1,519.16) a tonne by closing.
The contract posted 9% weekly gain last week.
“The market is led by the performance on the Dalian exchange, though low exports and better production can weigh down any rally,” a Kuala Lumpur-based palm oil trader said. “Still, the prolonged war is supporting the market.” Exports of Malaysian palm oil products for April 1-15 fell between 14% and 23% from the same period in March, cargo surveyors said.
Dalian’s most-active soyoil contract rose 0.57%, while its palm oil contract gained 2.10%. Soyoil prices on the Chicago Board of Trade were up 1.09%.
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 test a resistance at 6,548 ringgit a tonne, a break above could lead to a gain into 6,664-6,686 ringgit range, Wang Tao, Reuters technical analyst said.
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