JAKARTA: Malaysian palm oil futures rose for a third consecutive session on Monday, tracking strength in rival edible oils in China and crude oil. The benchmark palm oil contract for May delivery rose 1.55% to 4,195 ringgit ($947.81) per tonne by the midday break, after gaining 5.11% in the last two sessions.
The contract hit the highest in more than four weeks earlier in the session, riding on “spillover strength from the Dalian commodity exchange”, said a Kuala Lumpur-based trader, adding that a recovery in crude oil also helped the market. Dalian’s most-active soyoil contract gained 1.09%, while its palm oil contract rose 1.60%.
The Chicago Board of Trade was closed for a public holiday.
Palm is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may retest resistance zone of 4,155-4,196 ringgit
Oil prices edged higher on optimism about China’s demand recovery, after losing around 4% last week, though concerns over rising supplies in the United States and forecasts of more interest rate hikes tempered gains.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Palm oil may retest a resistance zone of 4,155-4,196 ringgit per tonne, probably after a moderate consolidation in the narrow range of 4,083-4,155 ringgit, said Reuters technical analyst Wang Tao.
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