KUALA LUMPUR: Malaysian palm oil futures climbed for a second straight session on Monday, driven by surging export demand, while higher palm olein prices also lent support to the market.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 37 ringgit, or 0.82%, to 4,548 ringgit ($1,077.47) a metric ton by the midday break.
Crude palm oil rallied above 4,500 ringgit on the back of a recent surge in palm oil demand, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Cargo surveyors estimated that palm oil exports during August 1-15 rose between 16.5% and 21.3% from a month earlier.
“Palm prices today are also lifted by higher palm olein prices during Asian hours,” the trader said. Dalian’s most-active soyoil contract rose 0.23%, while its palm oil contract climbed 2%.
Soyoil prices on the Chicago Board of Trade were down 0.51%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices slipped as the United States did not exert more pressure on Russia to end the Ukraine war by implementing further measures to disrupt Russian oil exports after the presidents from both countries met on Friday.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.26% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil may test resistance at 4,509 ringgit per ton, a break above which could lead to a gain to into the 4,563 ringgit to 4,596 ringgit range, Reuters technical analyst Wang Tao said.
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