JAKARTA: Palm oil futures in Malaysia clawed back on Tuesday after two days of losses, tracking crude oil and rival edible oil prices higher, but export resumption from top producer Indonesia capped gains.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 0.61% to 6,270 ringgit ($1,433.80) per tonne by midday break.
The contract rose as much as 2.29% earlier in the day before paring some of its gains.
Palm was supported by a bullish run in crude oil prices and expectation of a stronger Malaysian palm oil export for May, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
2pc additional duties on palm oil import to go
"However, Indonesian resumption of palm oil export, albeit at a slower pace has capped the rise," he added. Oil prices extended gains on Tuesday after the European Union agreed to slash oil imports from Russia, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak US and European summer driving season.
Crude oil affects palm oil prices as the vegetable oil is often used as feedstock for biofuel.
Meanwhile, Indonesia has received its first requests for palm oil export permits following the lifting of a ban a week ago, a senior official said, signaling a calibrated resumption of shipments amid protracted delays.
Dalian's most-active soyoil contract gained 0.46%, while its palm oil contract rose 0.70%. Soyoil prices on the Chicago Board of Trade were up 0.45%.
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 6,423 ringgit per tonne, as it has stabilized around a support at 6,220 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.