Palm oil inches higher on firmer export data, bargain buying

KUALA LUMPUR: Malaysian palm oil futures edged higher on Monday, as firmer export data from a cargo surveyor, bargain buying and stronger crude oil prices boosted sentiment.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 58 ringgit, or 1.49%, to 3,963 ringgit ($972.04) a metric ton by the midday break.

Cargo surveyor Intertek Testing Services (ITS) estimated that exports of Malaysian palm oil products for December 1-20 rose 2.4% from a month earlier.

AmSpec Agri Malaysia’s export estimates are expected later in the day.

Following a rebound in the Malaysian palm oil export performance, prices also climbed due to bargain buying, steady Dalian and Chicago futures, and an upward move in energy prices, said Anilkumar Bagani, head of commodity research at Sunvin Group, a Mumbai-based brokerage. Dalian’s most-active soyoil contract rose 0.03%, while its palm oil contract shed 0.36%.

Soyoil prices on the Chicago Board of Trade were up 0.5%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose after officials said the US had intercepted an oil tanker in international waters off the coast of Venezuela, raising fresh supply uncertainty. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Palm oil may test support at 3,885 ringgit per ton, a break below which could trigger a fall to 3,832 ringgit, Reuters technical analyst Wang Tao said.