JAKARTA: Malaysian palm oil futures rose for a third consecutive session on Monday to the highest closing in nearly seven weeks, tracking strength in rival edible oils in China and crude oil.
The benchmark palm oil contract for May delivery gained 32 ringgit or 0.77% to 4,163 ringgit ($940.15) per tonne, after gaining 5.11% in the last two sessions.
The contract hit the highest since Jan. 4 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 0.86%, while its palm oil contract rose 1.23%.
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.
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.
Palm oil gains for second week on weaker ringgit
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysian palm oil exports for the Feb 1-20 period rose between 27.7% and 33.1%, data from independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services showed on Monday.
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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